Measurement of energy rebound effect in households: Evidence from residential electricity consumption in Beijing, China

Abstract

Energy efficiency improvement policies have special significance for carbon emissions reduction and the mitigation of the effects of climate change. However the energy rebound effect caused by technological progress will indirectly increase energy consumption. The magnitude of the rebound effect largely determines the effectiveness of energy efficiency in mitigating energy consumption. This study reviews the main theory behind estimated methods of energy rebound effect measurement, focuses on constructing a double logarithm energy demand model and an error correction model of the asymmetric demand responses of electricity price changes to empirically analyse the direct rebound effect on residential electricity use in Beijing. It integrates consumer׳s demand theory with the embodied electricity of household spending from a seven-sector environmental energy-input–output (E-I-O) analysis to estimate the indirect rebound effect. The three income-elasticity, weight change, and proportional re-spending scenario simulation results show that: residential electricity use in Beijing exhibits a partial rebound effect, and the long-term direct and indirect rebound effects are 46% to 56%, and the short-term direct rebound effect is 24% to 37%. Finally, the direct and indirect energy rebound effect for various income groups needs further research. An appropriate policy mix should be adopted to mitigate effectively the rebound effect in China’s current lower energy price and lower energy efficiency market.