Reducing rebound without sacrificing macroeconomic benefits of increased energy efficiency?

Research output: Contribution to specialist publicationArticle

Abstract

Increased efficiency in the use of energy will trigger a series of price and income effects that result in cost-push or demand-led economic expansionary processes (depending on whether efficiency improves on the production or consumption side of the economy). However, the same set of processes will also generate rebound in energy use at the economy-wide level, acting to partially offset expected energy savings in the more efficient activity. The question then arises as to whether rebound is a necessary ‘evil’ that we must accept in order to enjoy economic gains of increased energy efficiency. Or, are the possibilities for expansion due to increased efficiency limited if we wish to maximise energy (and related emissions) savings? Or, can economy-wide rebound effects from increased energy efficiency be reduced without sacrificing macroeconomic benefits? We hypothesise that this may be possible if we focus on energy-using service needs and consider increased efficiency in the production/delivery of a less energy intensive competitor in the household consumption choice. That is, by changing the composition of consumption - here with focus on the demand of UK households for mobility and increasing the energy efficiency and attractiveness of less energy intensive (per person mile) public over private transport options - the net economic welfare gains of increased energy efficiency may preserved while reducing associated rebound effects.
LanguageEnglish
Pages31-32
Number of pages2
Specialist publicationIAEE Energy Forum
Publication statusPublished - 25 Jul 2016

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macroeconomics
energy efficiency
energy
welfare economics
energy use
economics
savings
Energy efficiency
Rebound
Macroeconomics
Energy
income
cost
effect
consumption
economy
household
demand
Economics
Rebound effect

Keywords

  • macroeconomics
  • energy efficiency
  • economic growth
  • rebound effects

Cite this

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title = "Reducing rebound without sacrificing macroeconomic benefits of increased energy efficiency?",
abstract = "Increased efficiency in the use of energy will trigger a series of price and income effects that result in cost-push or demand-led economic expansionary processes (depending on whether efficiency improves on the production or consumption side of the economy). However, the same set of processes will also generate rebound in energy use at the economy-wide level, acting to partially offset expected energy savings in the more efficient activity. The question then arises as to whether rebound is a necessary ‘evil’ that we must accept in order to enjoy economic gains of increased energy efficiency. Or, are the possibilities for expansion due to increased efficiency limited if we wish to maximise energy (and related emissions) savings? Or, can economy-wide rebound effects from increased energy efficiency be reduced without sacrificing macroeconomic benefits? We hypothesise that this may be possible if we focus on energy-using service needs and consider increased efficiency in the production/delivery of a less energy intensive competitor in the household consumption choice. That is, by changing the composition of consumption - here with focus on the demand of UK households for mobility and increasing the energy efficiency and attractiveness of less energy intensive (per person mile) public over private transport options - the net economic welfare gains of increased energy efficiency may preserved while reducing associated rebound effects.",
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author = "Karen Turner and Gioele Figus and Patrizio Lecca and Kim Swales",
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language = "English",
pages = "31--32",
journal = "IAEE Energy Forum",
issn = "1944-3188",

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Reducing rebound without sacrificing macroeconomic benefits of increased energy efficiency? / Turner, Karen; Figus, Gioele; Lecca, Patrizio; Swales, Kim.

In: IAEE Energy Forum, 25.07.2016, p. 31-32.

Research output: Contribution to specialist publicationArticle

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AB - Increased efficiency in the use of energy will trigger a series of price and income effects that result in cost-push or demand-led economic expansionary processes (depending on whether efficiency improves on the production or consumption side of the economy). However, the same set of processes will also generate rebound in energy use at the economy-wide level, acting to partially offset expected energy savings in the more efficient activity. The question then arises as to whether rebound is a necessary ‘evil’ that we must accept in order to enjoy economic gains of increased energy efficiency. Or, are the possibilities for expansion due to increased efficiency limited if we wish to maximise energy (and related emissions) savings? Or, can economy-wide rebound effects from increased energy efficiency be reduced without sacrificing macroeconomic benefits? We hypothesise that this may be possible if we focus on energy-using service needs and consider increased efficiency in the production/delivery of a less energy intensive competitor in the household consumption choice. That is, by changing the composition of consumption - here with focus on the demand of UK households for mobility and increasing the energy efficiency and attractiveness of less energy intensive (per person mile) public over private transport options - the net economic welfare gains of increased energy efficiency may preserved while reducing associated rebound effects.

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