Energy efficiency and local rebound effects: Theory and experimental evidence from Rwanda

Anicet Munyehirwe, Jörg Peters, Maximiliane Sievert, Erwin Bulte and Nathan Fiala

No 934, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: Energy efficiency is a key component of climate policy. We study micro and macro rebound effects after the introduction of energy-efficient biomass cookstoves (EEBCs). We develop a model of biomass supply and demand in rural Africa. The impact of EEBCs is empirically explored in Rwanda where we randomly varied subsidy levels for EEBCs at the village-level. Demand is price elastic, so we exploit exogenous saturation variation to study local rebound effects. While adoption of EEBCs reduces household firewood consumption, we find no meaningful local rebound effects and identify conditions under which this finding generalizes to other settings - or not.

Keywords: Energy efficiency; macro-rebound effect; technology adoption; improved cooking (search for similar items in EconPapers)
JEL-codes: D12 O13 Q28 R13 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-agr, nep-dev and nep-ene
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:934

DOI: 10.4419/96973094

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