Rebound Effects for Household Energy Services in the UK

This study estimates the combined direct and indirect rebound effects from energy efficiency improvements in the delivery of six energy services to UK households, namely: heating; lighting; cooking; refrigeration and clothes washing; entertainment and computing; and travel. We estimate a two-stage almost ideal demand system for household expenditure, with these energy services as expenditure categories. We estimate rebound effects in terms of carbon emissions and only include the ‘direct’ emissions associated with energy consumption. Our results suggest direct rebound effects of 70% for heating, 54% for travel and ~90% for the other energy services. But these effects are offset by negative indirect rebound effects. As a result, our estimates of combined rebound effects are smaller, namely 54% for heating, 67% for travel and ~40% for the other energy services. We also find some evidence that rebound effects have declined over time. We provide several caveats to these results, and indicate priorities for future research.

Chitnis, Mona, Fouquet, Roger and Sorrell, Steve (2020) Rebound effects for household energy services in the UK. Energy Journal, 41 (4). ISSN 0195-6574