The impact of increased efficiency in the industrial use of energy: A computable general equilibrium analysis for the United Kingdom

Allan, Grant; Hanley, Nick; McGregor, Peter; Swales, John; Turner, Karen

doi:10.1016/j.eneco.2006.12.006

Cited by 196 publications

(134 citation statements)

References 26 publications

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“…Evidence of the rebound effect from recycling environmental taxes appears in the macroeconomic simulations of Allan et al (2007). Using a computation general equilibrium (CGE) model of the UK economy, the authors simulate technology shocks consisting of improvements in energy efficiency.…”

Section: Expanding the Scope Of Rebound Effects To Include The Governmentioning

confidence: 99%

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

Vivanco

Freire‐González

Kemp

et al. 2014

Environ. Sci. Technol.

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The main objective of the thesis is to seek insights into the theory, and provide empirical evidence of rebound effects. Rebound effects reduce the environmental benefits of environmental policies and household behaviour changes. In particular, win-win demand side measures, in the form of energy efficiency and household consumption pattern changes, are seen as ways for households and businesses to save money and the environment. However, these savings have environmental impacts when spent, which are known as rebound effects. This is an area that has been widely neglected by policy makers.This work extends the rebound effect literature in three important ways, (1) it incorporates the potential for variation of rebound effects with household income level, (2) it enables the isolation of direct and indirect effects for cases of energy efficient technology adoption, and examines the relationship between these two component effects, and (3) it expands the scope of rebound effect analysis to include government taxes and subsidies. MACROBUTTON HTMLDirectUsing a case study approach it is found that the rebound effect from household consumption pattern changes targeted at electricity is between 5 and 10%. For consumption pattern changes with reduced vehicle fuel use, the rebound effect is in the order of 20 to 30%. Higher income households in general are found to have a lower total rebound effect; however the indirect effect becomes relatively more significant at higher household income levels. In the win-lose case of domestic photovoltaic electricity generation, it is demonstrated that negative rebound effects can occur, which can potentially amplify the environmental benefits of this action.The rebound effect from a carbon tax, which occurs due to the re-spending of raised revenues, was found to be in the range of 11-32%. Taxes and transfers between households of different income levels also have environmental implications. For example, a more progressive tax structure, with increased low income welfare payments is likely to increase greenhouse gas emissions. Subsidies aimed at encouraging environmentally friendly consumption habits are also subject to rebound effects, as they constitute a substitution of government expenditure for household expenditure. For policy makers, these findings point to the need to incorporate rebound effects in the environmental policy evaluation process.' KeywordsRebound effect, demand side management, direct rebound effect, indirect rebound effect, greenhouse gas emissions, CO 2 , household consumption patterns, efficiency, energy, conservation, natural resources. The energy and emissions produced at other stages of the production chain outside of the household scope. vi List of Tables and +/-is efficiency net effect minus the conservation net effect with negative values in parentheses). 66 Table 5.5: Rebound effects at mean and median total expenditure levels for separated fuel efficiency case (indirect reduction is the efficiency indirect rebound minus the conservation indir...

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Section: Expanding the Scope Of Rebound Effects To Include The Governmentioning

confidence: 99%

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

Vivanco

Freire‐González

Kemp

et al. 2014

Environ. Sci. Technol.

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“…Since CGE models have a well-developed supply side (Allan et al, 2007b), they are well-suited to analysing the supply-side consequences of a series of capital expenditures such as that required to install and operate a target renewable generating capacity.…”

Section: Outline Of Our Modelling Approachmentioning

confidence: 99%

Concurrent and legacy economic and environmental impacts from establishing a marine energy sector in Scotland

et al. 2008

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We examine the economic and environmental impact that the installation of 3GW of marine energy capacity would have on Scotland. This is not a forecast, but a projection of the likely effects of meeting the Scottish Government's targets for renewable energy through the development of a marine energy sec tor.Energy, with a particular focus on renewables, is seen by the Scottish Government as a "key sector", with high growth potential and the capacity to boost productivity (Scottish Government, 2007a, p. 40). The key nature of this sector has seen targets established for renewable energy, to achieve environmental and economic benefits. Using a regional computable general equilibrium (CGE) model of Scotland we show that the development of a marine energy sector can have substantial impacts on GDP and employment over the lifetime of the devices, given encouragement of strong indigenous inter-industry linkages. Furthermore, there are also substantial "legacy" effects that persist well beyond the design life of the devices.

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“…For example, according to Gardner and Joutz (1996), The short-run rebound e¤ects are negligible and long-run rebound e¤ects are considerable; both, however, are signi…cantly less than the theoretical results in Saunders (2000a,b) and Wei (2007). On the contrary, Allan, et al (2007) and Turner (2009) show that both shortrun and long-run rebound e¤ects are considerable, and surprisingly short-run rebound e¤ects are greater than long-run e¤ects, which seems to contradict previous theoretical studies on rebound e¤ects (e.g. Saunders, 2008;Wei, 2007).…”

Section: Motivationmentioning

confidence: 60%

“…For example, the "open economy" rebound e¤ect …rst identi…ed by Allan, et al (2007) and any rebound e¤ects that cancel out each other in the context of the global economy.…”

Section: Cautions and Limitationsmentioning

confidence: 99%

A general equilibrium view of global rebound effects

Wei

2010

Energy Economics

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The impact of increased efficiency in the industrial use of energy: A computable general equilibrium analysis for the United Kingdom

Cited by 196 publications

References 26 publications

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

Concurrent and legacy economic and environmental impacts from establishing a marine energy sector in Scotland

A general equilibrium view of global rebound effects

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