Do energy efficiency improvements reduce energy use? : empirical evidence on the economy-wide rebound effect in Europe and the United States
Anne Berner, Stephan Bruns, Alessio Moneta, David I. Stern
Improving energy efficiency is often considered to be one of the keys to reducing greenhouse gas emissions. However, efficiency gains also reduce the cost of energy services and may even reduce the price of energy, resulting in energy use rebounding and potential energy use savings being eaten up. There is only limited empirical research quantifying the economy-wide rebound effect that takes the dynamic economic responses to energy efficiency improvements into account. We use a Structural Factor-Augmented Vector Autoregressive model (S-FAVAR) that allows us to track how energy use changes in response to an energy efficiency improvement while accounting for a vast range of potential confounders. Our findings point to economy-wide rebound effects of 78% to 101% after two years in France, Germany, Italy, the U.K., and the U.S. These findings imply that energy efficiency innovations alone may be of limited help in reducing future energy use and emphasize the importance of tackling carbon emissions directly.
Year of publication: |
[2021]
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Authors: | Berner, Anne ; Bruns, Stephan B. ; Moneta, Alessio ; Stern, David I. |
Publisher: |
Pisa, Italy : LEM, Laboratory of Economics and Management, Institute of Economics, Scuola Superiore Sant'Anna |
Subject: | Energy efficiency | economy-wide rebound effect | climate change | climate policy | Structural FAVAR | Independent Component Analysis | USA | United States | Energieeinsparung | Energy conservation | Energiekonsum | Energy consumption | Klimawandel | Climate change | EU-Staaten | EU countries | Wirkungsanalyse | Impact assessment |
Saved in:
freely available
Extent: | 1 Online-Ressource (circa 47 Seiten) Illustrationen |
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Series: | LEM working paper series. - Pisa : [Verlag nicht ermittelbar], ISSN 2284-0400, ZDB-ID 2436330-3. - Vol. 2021, 20 (May 2021) |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper |
Language: | English |
Other identifiers: | hdl:10419/243516 [Handle] |
Classification: | C32 - Time-Series Models ; Q43 - Energy and the Macroeconomy |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012520265