Abstract
This article develops a quantile regression model to measure the magnitude of the direct rebound effect for residential electricity demand based on micro-level data from an original survey of a representative sample of 2356 French households. We explore the rebound effect for different groups of residents. Traditionally, debate has focused on decreased prices for energy services due to efficiency improvements and their effects on energy demand. The methodological innovation provided by this paper is that it implements two theoretical estimation strategies: (i) energy efficiency elasticity of the demand for energy services, and (ii) price elasticity of the demand for energy services. Our findings reject the hypothesis of a backfire effect in the context of residential electricity use. Specifically, based on energy efficiency elasticity, we provide evidence of a rebound effect of between 72% and 86% but with substantial heterogeneity among consumption quantiles. Our results show that the direct rebound effect has critical relevance for energy efficiency policy in the face of energy invisibility in France.
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