Energy efficiency and the rebound effect

In recent years the argument that rebound effects, triggered by economy-wide price and income effects, may partially or wholly offset reductions in energy consumption expected from energy efficiency improvements has gained a great deal of attention in both academic and policy arenas. In the UK, a report by the House of Lords (2005) raised the question as to whether this argument provides an explanation as to why total energy consumption in the UK hasn’t fallen in line with increased energy efficiency. In response, the UK Research Councils have funded research, first through the UK Energy Research Centre (UKERC) and now at the University of Strathclyde to investigate the conditions under which rebound effects may occur in the UK economy.