Rebound effect and its decomposition-an analysis based on energy types in China

Rebound effect derived from energy efficiency improvement has been widely invested.However,most of studies focus on the rebound effect of the energy composite level and neither distinguish nor compare different energy types.We compare the differences in energy saving and energy rebound between primary and secondary energy sources,and further decompose the rebound effect into production rebound part and final demand component.To do so,we add a module for rebound into a comparative state China-CGE model.We design and test two simulation scenarios using the model.In Scenario 1,all production sectors' energy efficiency of using primary energy increases by 5%.In Scenario 2,all production sectors' energy efficiency of using secondary energy increases by 5%.The results show that Scenario 2 leads to more GDP growth and more energy saving.Our scenarios show rebound effects range between 9.6% and 27.9%,and in general are higher when energy efficiency of using primary energy sources is improved.Our decomposition analysis shows that improving energy efficiency in production sectors would stimulates energy use of final demand.Indeed,the consumption side has significant contribution to rebound in secondary energy use,especially in crude oil and gas.This study reveals that improving efficiency of using secondary energy is better than improving that of primary energy,both in terms of economic impact and energy rebound.And complementary policies that prevent energy services prices from falling too much can be adopted to reduce rebound.Controlling residential energy use could also be effective in reducing rebound,this has particular implication to economies in which residential energy consumption are far from saturation.

Energy Efficiency and Rebound Effect:Does Energy Efficiency Save Energy?

The aim of this study is to examine the theoric and empirical literature about “rebound effect”. This study summarizes energy efficiency policy and programs in general and in Turkey. Also it gives defination of the “rebound effect” concept. The rebound effect is related to consumer’s tendency to consume more energy due to economic benefit from efficiency improvement. The ‘rebound effect’ is the focus of a long-running dispute of energy economics but it is very new concept in the most developing countries. In literature according to some economist gains in energy efficiency will also reduce the real per unit price of energy services and hence the consumption of energy will rise and partially offset the initial reduction in the usage of energy sources. However for others size of the rebound effect is too small to take attention. The empirical literature shows that the size of rebound effect can change from country to country and sector to sector.

Direct energy rebound effect for road transportation in China

The enhancement of energy efficiency stands as the principal avenue for attaining energy conservation and emissions reduction objectives within the realm of road transportation.Nevertheless,it is imperative to acknowledge that these objectives may,in part or in entirety,be offset by the phenomenon known as the energy rebound effect(ERE).To quantify the long-term EREs and short-term EREs specific to China’s road transportation,this study employed panel cointegration and panel error correction models,accounting for asymmetric price effects.The findings reveal the following:The long-term EREs observed in road passenger transportation and road freight transportation range from 13%to 25%and 14%to 48%,respectively;in contrast,the short-term EREs in road passenger transportation and road freight transportation span from 36%to 41%and 3.9%to 32%,respectively.It is noteworthy that the EREs associated with road passenger transportation and road freight transportation represent a partial rebound effect,falling short of reaching the magnitude of a counterproductive backfire effect.This leads to the inference that the upsurge in energy consumption within the road transportation sector cannot be solely attributed to advancements in energy efficiency.Instead,various factors,including income levels,the scale of commodity trade,and industrial structure,exert more substantial facilitating influences.Furthermore,the escalation of fuel prices fails to dampen the demand for energy services,whether in the domain of road passenger transportation or road freight transportation.In light of these conclusions,recommendations are proffered for the formulation of energy efficiency policies pertinent to road transportation.

The rebound effect on energy efficiency improvements in China’s transportation sector:A CGE analysis

Energy use is becoming more efficient due to technological innovations.We focused on the transportation sector in China to develop a national multisector computable general equilibrium(CGE)model for analyzing the rebound effect from an improvement of 10%in the energy efficiency.We compared the size of the energy rebound effect at both the macroeconomic and sectoral levels in different transportation modal subsectors,namely rail,road,water,and air travel.The findings showed that the magnitude of the rebound effect varies across the transportation modes.This is particularly true for the air transportation sector,which has an economy-wide rebound effect of 30.1%and an own-sector rebound effect of 74.6%because of a sharp increase in the export demand for air transport services.We also quantitatively evaluated the contribution of energy efficiency improvement in the transportation sector to China’s economic growth and carbon reductions and found a positive dividend effect on the economy as well as the environment.The modeling results suggest that improving overall transportation energy efficiency by 10%generates an economy-wide welfare gain of approximately 29 billion yuan,while 19 billion yuan are attributable to a more efficient road transportation subsector.Furthermore,to offset the effects of these mode-specific rebound effects,we simulated the effectiveness of different policies and solutions.These included economic instruments in the form of energy,environmental,and carbon taxes,household transport consumption structure adjustments,and energy structure adjustments.This study revealed that combining these sustainable development policies offers opportunities for economy-wide multisectoral improvements in energy savings,emissions reduction,and economic benefits.

Energy rebound effect in China's manufacturing sector:Fresh evidence fromfirm-level data

The rebound effect refers to the phenomenon that individuals tend to consume more energy in the face of energy efficiency improvement,which reduces the expected energy-saving effect.Previous empirical studies on the rebound effect of regions and sectors do not provide microscopic evidence.To fill this gap,we use China's firmlevel data to estimate the rebound effect in China's manufacturing subsectors,providing a detailed picture of China's rebound effect across different sectors and different regions in 2001-2008.Results show that a partial rebound effect robustly appears in all industries,and the disparity between sectors is quite broad,ranging from 43.2%to 96.8%.As for the dynamic rebound effect of subsectors,most subsectors present an upward trend,whereas few subsectors show a clear downward trend.As a whole,the declined trend of the rebound effect is driven by the descent of minority sectors with high energy consumption and high energy-saving potential.In addition,we find that the disparity of the rebound effect across sectors is more significant than that across regions.