Rebound , efficiency improvement , energy efficiency , habits
Abstract:
We investigate the rebound effect of a 10% energy efficiency improvement in
the provision of private transport services by German households. In the process,
we take into account that household behaviour may be in
uenced by habits, build
on a detailed representation of the provision of private transport services, and disentangle
the direct and indirect rebound effect. Our analysis shows that rebound
has the potential to significantly reduce the expected energy savings of an energy
efficiency improvement at households. In particular if households have a
exible
demand structure, rebound can erode large parts of efficiency increases. Household
habits have an initial detrimental effect on rebound. They limit the ability of households
to adapt to changes in the prevailing price and income system and therewith
temporally block parts of the channels that lead to rebound. In the long run, however,
if habits are formed on the basis of historic consumption, habits do not affect
rebound. In isolation, the direct and indirect rebound effect of the efficiency shock
are positive, but direct rebound is much stronger.
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