Abstract
Energy efficiency can be represented by energy intensity, i.e., physical energy use per unit economic output. One percent energy efficiency improvement is expected to reduce one percent energy intensity and physical energy use to produce a given output. However, the real energy intensity and physical energy use may differ from the expectations due to output growth. How can we estimate the rebound effect of the energy intensity change? The present paper offers a method based on a general form of production function. The method does not require the assumption of profit maximization for producers. The energy intensity changes can come from both factor-augmented and factor-neutral technological improvement and substitutions between energy and other inputs in the production. In the calculation, the signal for policy-making is not plausible if potential energy use is assumed to change at the same rate as the observed energy intensity.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
