Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/179795
Authors: 
Böhringer, Christoph
Rivers, Nicholas
Year of Publication: 
2018
Series/Report no.: 
Oldenburg Discussion Papers in Economics V-410-18
Abstract: 
We develop a stylized general equilibrium model to decompose the rebound effect of energy efficiency improvements into its partial and general equilibrium components. In our theoretical analysis, we identify key drivers of the general equilibrium rebound effect, including a composition channel, an energy price channel, a labor supply channel, and a growth channel. Based on numerical simulations with both the stylized model as well as a large-scale computable general equilibrium model of the global economy, we show that both general and partial equilibrium components of the rebound effect can be substantial. Our benchmark parameterization suggests a total rebound effect due to an exogenous energy efficiency improvement in the US manufacturing sector of 67% with roughly two-thirds occurring through the partial equilibrium rebound channel and the remaining one-third occurring through the general equilibrium rebound channel.
Subjects: 
energy efficiency
climate change
rebound effect
general equilibrium
JEL: 
C68
D58
Q43
Q55
Document Type: 
Working Paper
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