monopsony prices. Subsidizing energy efficiency to reduce electricity demand at the margin can solve that problem, if energy … efficiency and electricity use are substitutes. We may not observe these effects if the regulator can set price as well as …

energy efficiency improvement at households. In particular if households have a flexible demand structure, rebound can erode … large parts of efficiency increases. Household habits have an initial detrimental effect on rebound. They limit the ability … not affect rebound. In isolation, the direct and indirect rebound effect of the efficiency shock are positive, but direct …