Template-Type: ReDIF-Paper 1.0
Author-Name: Grant Allan
Author-Name-First: Grant
Author-Name-Last: Allan
Author-Email: grant.j.allan@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Peter McGregor
Author-Name-First: Peter
Author-Name-Last: McGregor
Author-Email: p.mcgregor@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Kim  Swales
Author-Name-First: Kim 
Author-Name-Last: Swales
Author-Email: j.k.swales@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Karen Turner
Author-Name-First: Karen
Author-Name-Last: Turner
Author-Email: karen.turner@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Title: The Rebound Effect with Energy Production: A Partial Equilibrium Analysis
Abstract: Rebound is the extent to which improvements in energy efficiency fail to translate fully into reductions in energy use because of the implicit fall in the price of energy, when measured in efficiency units. This paper discusses aspects of the rebound effect that are introduced once energy is considered as a domestically produced commodity. A partial equilibrium approach is adopted in order to incorporate both energy use and production in a conceptually tractable way. The paper explores analytically two interesting results revealed in previous numerical simulations. The first is the possibility that energy use could fall by more than the implied improvement in efficiency. This corresponds to negative rebound. The second is the finding that the short-run rebound value can be greater than the corresponding long-run value.
Length: 42 pages
Creation-Date: 2009-11
Revision-Date: 
Publication-Status: 
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2009/09-25.pdf
File-Format: Application/pdf
Number: 0925
Classification-JEL: Q41, Q43, Q55, Q56
Keywords: Energy demand, energy efficiency, rebound, partial equilibrium
Handle: RePEc:str:wpaper:0925