Energy Efficiency and Rebound Effects: An Econometric Analysis of Energy Demand in the Commercial Building Sector

Yueming Qiu

doi:10.1007/s10640-013-9729-9

Energy Efficiency and Rebound Effects: An Econometric Analysis of Energy Demand in the Commercial Building Sector

Yueming Qiu

Arizona State University

Research output: Contribution to journal › Article

14 Scopus citations

Abstract

It is widely recognized that the adoption of energy saving innovations can induce an increase in the usage of the corresponding technologies and thus can possibly increase energy consumption. Among other concerns is that uncertainties regarding the magnitude of this "rebound effect" can deter policy makers from promoting energy efficiency. This paper analyzes the rebound effects of the adoption of energy efficient technologies in commercial buildings. Based upon a structural model of technology adoption and subsequent energy demand at the building level, the empirical results are that energy efficiency can reduce electricity use by about 35 % and natural gas consumption by about 50 %.

Original language	English (US)
Pages (from-to)	295-335
Number of pages	41
Journal	Environmental and Resource Economics
Volume	59
Issue number	2
DOIs	https://doi.org/10.1007/s10640-013-9729-9
State	Published - Oct 2014

Keywords

Electricity and natural gas demand
Energy efficiency
Heckman selection model
Price elasticity
Rebound effect

ASJC Scopus subject areas

Economics and Econometrics
Management, Monitoring, Policy and Law

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Qiu, Y. (2014). Energy Efficiency and Rebound Effects: An Econometric Analysis of Energy Demand in the Commercial Building Sector. Environmental and Resource Economics, 59(2), 295-335. https://doi.org/10.1007/s10640-013-9729-9

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