Modeling the rebound effect in two manufacturing industries

Safarzynska, Karolina (2012) Modeling the rebound effect in two manufacturing industries. Technological Forecasting and Social Change , 79 (6). pp. 1135-1154. ISSN 0040-1625


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The rebound effect refers to the phenomenon that energy savings from improvements in energy efficiency are lower than expected due to unintended second-order effects. Grasping specific mechanisms related to the rebound effect requires a good understanding of interactions between heterogonous agents on multiple markets. Otherwise, policies aimed at reducing energy use may render counter-expected and unforeseen consequences. In this paper, we propose a formal model, where technological change results from interactions on two markets: between consumers and producers in the market for final goods, and heterogeneous power plants in the electricity market. The analysis provides insights to the role of technological change, supply-demand coevolution, and status-driven consumption in explaining the rebound effect. The model is employed to compare effectiveness of economic policies aimed at reducing carbon emissions associated with production of consumer goods, namely: a tax on electricity and "nuclear obligations" to produce ten percent of electricity from nuclear energy. (author's abstract)

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version may require a subscription.
Keywords: electricity / energy savings / rebound effect / status consumption
Classification Codes: JEL D11, L22, 033, Q48
Divisions: Departments > Sozioökonomie > Multi-Level Governance and Development
Version of the Document: Accepted for Publication
Variance from Published Version: Minor
Depositing User: Dissertation Administrator
Date Deposited: 21 Aug 2012 11:59
Last Modified: 16 Aug 2015 21:39
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