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

Yueming Qiu

Research output: Contribution to journalArticle

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 languageEnglish (US)
Pages (from-to)295-335
Number of pages41
JournalEnvironmental and Resource Economics
Volume59
Issue number2
DOIs
StatePublished - 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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