'Rebound' effects from increased energy efficiency: a time to pause and reflect

Citation

Turner K (2012) 'Rebound' effects from increased energy efficiency: a time to pause and reflect. Stirling Economics Discussion Paper, 2012-15.

Abstract
The phenomenon of rebound effects has sparked considerable academic, policy and press debate over the effectiveness of energy efficiency policy in recent years. There has been a huge surge in empirical studies claiming rebound effects of hugely varying magnitudes. The contention of this paper is that the lack of consensus in the literature is grounded in a rush to empirical estimation in the absence of solid analytical foundations. Focus on measuring a single 'rebound' measure has led to a neglect of detail on precisely what type of change in energy use is considered in any one study and on the range of mechanisms governing the economy-wide response. This paper attempts to bring a reflective pause to the development of the rebound literature, with a view to identifying the key issues that policymakers need to understand and analysts need to focus their attention on.

Keywords
Energy efficiency; Rebound; Energy demand; Energy supply

JEL codes

• Q01: Sustainable Development
• Q40: Energy: General
• Q41: Energy: Demand and Supply; Prices
• Q43: Energy and the Macroeconomy