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Economy-wide estimates of rebound effects: evidence from panel data

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journal contribution
posted on 29.09.2015, 15:40 by Morakinyo Adetutu, Anthony Glass, Thomas G. Weyman-Jones
Energy consumption and greenhouse emissions across many countries have increased overtime despite widespread energy efficiency improvements. One explanation offered in the literature is the rebound effect (RE), however there is a debate about its magnitude and the appropriate model for estimating it. Using a combined stochastic frontier analysis (SFA) and two-stage dynamic panel data approach, we explore these two issues of magnitude and model for 55 countries over the period 1980 to 2010. Our central estimates indicate that in the short-run, 100% energy efficiency improvement is followed by 90% rebound in energy consumption, but in the long-run it leads to a 136% decrease in energy consumption. Overall, our estimated cross-country RE magnitudes indicate the need to consider or account for RE when energy forecasts and policy measures are derived from potential energy efficiency savings.

History

School

  • Business and Economics

Department

  • Economics

Published in

The Energy Journal

Citation

GLASS, A.J., ADETUTU, M. and WEYMAN-JONES, T.G., 2015. Economy-wide estimates of rebound effects: evidence from panel data. The Energy Journal, 37(3), pp. 251-269.

Version

NA (Not Applicable or Unknown)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution 4.0 Unported Licence (CC BY). Full details of this licence are available at: http://creativecommons.org/licenses/by/4.0/

Publication date

2015

Notes

This is an Open Access Article. It is published by IAEE under the Creative Commons Attribution 4.0 Unported Licence (CC BY). Full details of this licence are available at: http://creativecommons.org/licenses/by/4.0/

ISSN

0195-6574

eISSN

1944-9089

Language

en