Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192719 
Year of Publication: 
2013
Series/Report no.: 
Discussion Papers No. 737
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
Increased energy efficiency is often seen as the best way of reducing energy consumption. However, the cost reduction resulting from the efficiency increase can undermine the energy-saving potential of the efficiency measures. In this study, we develop a method for decomposing the behavioral responses to increased energy efficiency based on a conditional demand model applied to a household production framework. We find that the electricity savings potential of the increased use of heat pumps in Norwegian homes is completely offset by changes in consumption. Households with heat pumps maintain higher indoor temperatures, consume less alternative fuels and engage less in energy-saving behavior than other households. This analysis illustrates that subsidizing investments in new and more energy-efficient technology may not always be an effective means of reducing energy consumption.
Subjects: 
Household energy consumption
Eergy-saving technology
Heat pump
Rebound effects
JEL: 
C31
C34
D12
D13
Q41
Document Type: 
Working Paper

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