Environmental rebounds/backfires: Macroeconomic implications for the promotion of environmentally-friendly products

Chang, Juin‐jen; Wang, Wei-Neng; Shieh, Jhy-yuan

doi:10.1016/j.jeem.2017.09.004

Cited by 35 publications

(11 citation statements)

References 40 publications

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“…substitution and income effects), modelers set all prices fixed except for the energy sector or service in analysis. To calculate the general equilibrium component, common used channels are: price, growth: sectoral allocation, labor supply [Böhringer and Rivers, 2018] [Chang et al, 2018], and growth: fiscal stimulus [Figus et al, 2017a]. Finally the total rebound effect is obtained summing the partial equilibrium components and general equilibrium component (or the economy-wide component, as discussed in section 3.2.2).…”

Section: Macroeconomic Simulation Modelsmentioning

confidence: 99%

“…For (4) and (5), mobile representation of capital between national sectors, investments, and labor increase gradually. (6) Recent models are not only dynamic, such that they capture consumer's responsiveness [Figus et al, 2017b], [Figus et al, 2018] [Chang et al, 2018], [Bye et al, 2018], [Duarte et al, 2018], including consumer response to price changes in time, but are also regional-specific (or spatial CGE models) [Helgesen et al, 2018]. (7) To represent energy and non-energy goods, CES/Cobb douglas functions are commonly used and inputs in the energy sector are usually modeled as Leontief composites, with no possibility of substitution, in RE studies assessed in this overview.…”

Section: Macroeconomic Simulation Modelsmentioning

confidence: 99%

“…pollution effects). Chang et al [2018] found that ignoring these impacts could result in underestimation of the energy rebound effect magnitude.…”

Section: Combined Insightsmentioning

confidence: 99%

“…Interactions between energy consumption, GHG emissions reductions and welfare. Chang et al [2018] found for the production side that pollution-minimizing policies are less costly than welfaremaximizing increases in energy efficiency improvements on green technologies, describing a U-shaped environmental Kuznets curve. In general terms, to reduce global emissions and energy use in the long term, EEI policies on both, the demand and supply side, could help illustrate existing trade-offs/cobenefits between economic growth, social welfare, reduction of GHG emissions, and total energy use [Wei and Liu, 2017].…”

Section: Motivations and Scope For Future Researchmentioning

confidence: 99%

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The Rebound Effect and its Representation in Energy and Climate Models

Montero

Löschel²,

Madlener

2018

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. AbstractIn this paper, we review the state-of-the-art and common practice of energy and climate modeling visa-vis the rebound literature, in particular regarding how macroeconomic energy and climate models quantify and include energy and greenhouse gas rebound effects. First, we focus on rebound effects in models of costless energy efficiency improvement that hold other attributes constant (zero-cost breakthrough), and an energy efficiency policy that may be bundled with other product changes that affect energy use (policy-induced efficiency improvement) (Gillingham et al. 2015). Second, we examine macroeconomic studies focusing on energy efficiency both in industry and in private households. Third, we go through a general theoretical revision from micro-to macroeconomic levels (the aggregation level) to include a review of the so-called meso-level studies (focused on the analysis of the production side). From 118 recent studies along the aggregation level, out of which 25 compute rebound calculations, we find that the average energy rebound effect is 58% with a standard deviation of 58%, and when we include green house gas rebound calculations, the magnitude is of the order of 43% with a standard deviation of 55%. Finally, we argue that the rebound effect is a phenomenon that requires a sound understanding of the complex interactions from different dimensions (e.g. aggregation level, heterogeneity, climate, energy conservation and economic growth), and we provide some ideas and motivations for future research. JEL ClassificationE13, Q410, Q430, Q48, Q540, R13

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Section: Macroeconomic Simulation Modelsmentioning

confidence: 99%

Section: Macroeconomic Simulation Modelsmentioning

confidence: 99%

“…pollution effects). Chang et al [2018] found that ignoring these impacts could result in underestimation of the energy rebound effect magnitude.…”

Section: Combined Insightsmentioning

confidence: 99%

Section: Motivations and Scope For Future Researchmentioning

confidence: 99%

See 2 more Smart Citations

The Rebound Effect and its Representation in Energy and Climate Models

Montero

Löschel²,

Madlener

2018

SSRN Journal

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“…These early studies reveal how assumptions regarding microeconomic elasticities of substitution can generate differences in estimated rebound. Recent studies, however, relax the single-sector assumption and extend the analysis to a multisector framework and identify additional drivers of the general equilibrium rebound effect (Böhringer and Rivers 2018;Lemoine 2018;Hart 2018;Chang et al 2018;Fullerton and Ta 2019). Although they account for intersectoral impacts from energy efficiency improvements in a multisector framework, these studies do not explicitly account for input-output linkages between sectors in the economy and, thus, are unable to explain the wide variation in numerical estimates of the general equilibrium rebound effect.…”

Section: Introductionmentioning

confidence: 99%

Energy efficiency in general equilibrium with input–output linkages

Blackburn¹,

Moreno‐Cruz

2021

Journal of Environmental Economics and Management

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Industrial activity periodically experiences breakthrough innovations in energy efficiency, but the estimated impacts of these innovations on aggregate energy use are highly varied. We develop a general equilibrium model to investigate whether this variation is determined by the structure of the economy's input-output network. Our results show sector-specific energy efficiency improvements affect aggregate energy use through adjustments in factor markets and commodity markets, and a process of structural transformation that alters the way energy is used and produced in the economy. We link the aggregate impact of these processes with new network centrality concepts that account for the capacity of a sector to transmit and respond to efficiency innovations. In a calibrated simulation, we find variation in these centrality concepts explains between 38 and 92 percent of variation in the aggregate impacts of energy efficiency, which suggests input-output structure is a critical determinant of the aggregate effects of energy efficiency.

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Klimaschutz und Klimawandel

Edenhofer

Kowarsch

2023

Handbuch Angewandte Ethik

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Environmental rebounds/backfires: Macroeconomic implications for the promotion of environmentally-friendly products

Cited by 35 publications

References 40 publications

The Rebound Effect and its Representation in Energy and Climate Models

The Rebound Effect and its Representation in Energy and Climate Models

Energy efficiency in general equilibrium with input–output linkages

Klimaschutz und Klimawandel

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