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The purpose of this paper is to estimate industry-specific direct rebound effects and to relate these effects to industry energy efficiency programs. The rebound effect represents economic behavior that will offset energy savings from energy efficiency improvements. The paper focuses on four energy intense sectors in Sweden; pulp and paper, iron and steel, chemical, and mining, during 2001-2012. We apply a factor demand model that allows for asymmetric energy price responses, i.e. that firms respond differently to increasing and decreasing energy prices. The results show considerable rebound effects. For electricity and non-fossil fuels, efficiency improvements could even ‘backfire’. To mitigate this effect, policies, such as voluntary energy efficiency programs, should be combined with an increase in energy taxes if the ambition is to reduce overall energy use.

The objectives of the paper are to: (a) derive and discuss indicators of industrial companies' decision-making and management practices on energy use; and (b) investigate whether these practices can help explain variations in energy intensities across these companies. The data were collected through telephone interviews with 101 large industrial firms in Sweden. The indicators display a significant overall increase in firms' awareness of energy efficiency issues over time, including the attention devoted to these issues at the top management level. Still, our econometric results show that energy prices constitute the most important determinant of inter-firm differences in energy intensities. Higher energy prices over the time-period, have induced the implementation of energy-relevant management and practices, and led to more systematic decision-making processes. Finally, firms for which so-called "hidden" costs, e.g., the costs of production disruptions, are a large concern, will be more energy intense than others.

The purpose of this paper is to analyze the direct rebound effect potentially prevailing in energy intense industries. The rebound effect represents economic mechanisms that will offset energy savings from energy efficiency improvements. For this purpose, a factor demand model is applied incorporating an asymmetric energy price response. Asymmetric prices imply that firms respond more strongly to energy price increases than to energy price decreases. In the empirical model we use a firm level, unbalanced panel covering the years 2001 to 2012 and four major Swedish energy-intensive industries; pulp and paper, iron and steel, chemical, and mining. The result indicates that the rebound effect is considerable in these industries. To mitigate this effect, the results suggest that policies stimulating an increase in energy efficiency should be combined with a raise in energy taxes.