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Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects

Research output: Working paperDiscussion paper

Standard

Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects. / Hunt, Lester C.; Ryan, David L.

Guildford : Surrey Energy Economics Centre, 2014. (Surrey Energy Economics Discussion paper Series SEEDS; No. SEEDS148).

Research output: Working paperDiscussion paper

Harvard

Hunt, LC & Ryan, DL 2014 'Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects' Surrey Energy Economics Discussion paper Series SEEDS, no. SEEDS148, Surrey Energy Economics Centre, Guildford. <http://www.seec.surrey.ac.uk/research/SEEDS/SEEDS148.pdf>

APA

Hunt, L. C., & Ryan, D. L. (2014). Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects. (Surrey Energy Economics Discussion paper Series SEEDS; No. SEEDS148). Surrey Energy Economics Centre. http://www.seec.surrey.ac.uk/research/SEEDS/SEEDS148.pdf

Vancouver

Hunt LC, Ryan DL. Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects. Guildford: Surrey Energy Economics Centre. 2014 Jun. (Surrey Energy Economics Discussion paper Series SEEDS; SEEDS148).

Author

Hunt, Lester C. ; Ryan, David L. / Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects. Guildford : Surrey Energy Economics Centre, 2014. (Surrey Energy Economics Discussion paper Series SEEDS; SEEDS148).

Bibtex

@techreport{5e5360e6ba294f0491be926e874462fa,
title = "Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects",
abstract = "Rebound effects occur when, due to behavioural responses by consumers to the resulting fall in the implicit price of energy services, energy efficiency improvements result in energy savings that are often less than those suggested by engineering calculations. In the absence of data on energy efficiency or on the energy services (such as heating or lighting) provided by the energy that is used to produce them, rebound effects are often estimated as the negative of own-price elasticities obtained from standard energy demand equations. Using a recently developed model of demand for energy services, which facilitates estimation of a much wider range of rebound effects than has been previously considered, this approach is shown to be inappropriate unless the energy demand equations are specified in a certain way, and even in that case, often only under somewhat heroic assumptions. Illustrative empirical analysis using UK time-series data indicates the extent to which rebound effects can differ from price elasticities.",
keywords = "energy services demand, modelling rebound effects",
author = "Hunt, {Lester C.} and Ryan, {David L.}",
year = "2014",
month = jun,
language = "English",
series = "Surrey Energy Economics Discussion paper Series SEEDS",
publisher = "Surrey Energy Economics Centre",
number = "SEEDS148",
type = "WorkingPaper",
institution = "Surrey Energy Economics Centre",

}

RIS

TY - UNPB

T1 - Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects

AU - Hunt, Lester C.

AU - Ryan, David L.

PY - 2014/6

Y1 - 2014/6

N2 - Rebound effects occur when, due to behavioural responses by consumers to the resulting fall in the implicit price of energy services, energy efficiency improvements result in energy savings that are often less than those suggested by engineering calculations. In the absence of data on energy efficiency or on the energy services (such as heating or lighting) provided by the energy that is used to produce them, rebound effects are often estimated as the negative of own-price elasticities obtained from standard energy demand equations. Using a recently developed model of demand for energy services, which facilitates estimation of a much wider range of rebound effects than has been previously considered, this approach is shown to be inappropriate unless the energy demand equations are specified in a certain way, and even in that case, often only under somewhat heroic assumptions. Illustrative empirical analysis using UK time-series data indicates the extent to which rebound effects can differ from price elasticities.

AB - Rebound effects occur when, due to behavioural responses by consumers to the resulting fall in the implicit price of energy services, energy efficiency improvements result in energy savings that are often less than those suggested by engineering calculations. In the absence of data on energy efficiency or on the energy services (such as heating or lighting) provided by the energy that is used to produce them, rebound effects are often estimated as the negative of own-price elasticities obtained from standard energy demand equations. Using a recently developed model of demand for energy services, which facilitates estimation of a much wider range of rebound effects than has been previously considered, this approach is shown to be inappropriate unless the energy demand equations are specified in a certain way, and even in that case, often only under somewhat heroic assumptions. Illustrative empirical analysis using UK time-series data indicates the extent to which rebound effects can differ from price elasticities.

KW - energy services demand

KW - modelling rebound effects

M3 - Discussion paper

T3 - Surrey Energy Economics Discussion paper Series SEEDS

BT - Catching on the rebound: why price elasticities are generally inappropriate measures of rebound effects

PB - Surrey Energy Economics Centre

CY - Guildford

ER -

ID: 8170719