Template-Type: ReDIF-Paper 1.0
Author-Name: Patrizio  Lecca
Author-Name-First: Patrizio 
Author-Name-Last: Lecca
Author-Email: patrizio.lecca@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: J. Kim Swales
Author-Name-First: J. 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: K.Turner@hw.ac.uk. 
Author-Workplace-Name: Department of Accounting, Economics and Finance, School of Management and Languages, Heriot-Watt University
Title: The added value from a general equilibrium analyses of increased efficiency in household energy use 
Abstract: The aim of the paper is to identify the added value from using general equilibrium techniques to consider the economy-wide impacts of increased efficiency in household energy use. We take as an illustrative case study the effect of a 5% improvement in household energy efficiency on the UK economy. This impact is measured through simulations that use models that have increasing degrees of endogeneity but are calibrated on a common data set. That is to say, we calculate rebound effects for models that progress from the most basic partial equilibrium approach to a fully specified general equilibrium treatment. The size of the rebound effect on total energy use depends upon: the elasticity of substitution of energy in household consumption; the energy intensity of the different elements of household consumption demand; and the impact of changes in income, economic activity and relative prices. A general equilibrium model is required to capture these final three impacts.
Length: 51 pages
Creation-Date: 2013-06
Revision-Date: 
Publication-Status: Published
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2013/13-08FINAL.pdf
File-Format: Application/pdf
Number: 1308
Classification-JEL: C68, D57, D58, Q41, Q43, Q48
Keywords: Energy efficiency, indirect rebound effects, economy-wide rebound effects, household energy consumption, CGE models
Handle: RePEc:str:wpaper:1308