Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/107748 
Year of Publication: 
2015
Series/Report no.: 
Nota di Lavoro No. 107.2014
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
What do we know about the size of the rebound effect? Should we believe claims that energy efficiency improvements lead to an increase in energy use? This paper clarifies what the rebound effect is, and provides a guide for economists and policymakers interested in its magnitude. We describe how some papers in the literature consider the rebound effect from a costless exogenous increase in energy efficiency, while others examine the effects of a particular energy efficiency policy - a distinction that leads to very different welfare and policy implications. We present the most reliable evidence available quantifying the energy efficiency rebound, and discuss areas where estimation is extraordinarily difficult. Along these lines, we offer a new way of thinking about the macroeconomic rebound effect. Overall, the existing research provides little support for the so-called backfire hypothesis. Still, much remains to be understood, particularly relating to induced innovation and productivity growth.
Subjects: 
Energy Efficiency
Rebound Effect
Take-back Effect
Backfire
Jevons Paradox
JEL: 
H23
Q38
Q41
Document Type: 
Working Paper

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