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Energy Efficiency and Climate Policy: The Rebound Dilemma

Energy Efficiency and Climate Policy: The Rebound Dilemma

Full Title:  Energy Efficiency and Climate Policy: The Rebound Dilemma
Author(s):
Publisher(s):  Institute for Energy Research
Publication Date: July 1, 2012
Full Text: Download Resource
Description (excerpt):

Much of today’s energy policy assumes that regulations mandating greater energy efficiency will reduce energy use. That isn’t always the case and energy efficiency improvements are seldom as large as promised by engineering calculations because of “rebounds.” For example, people who install lighting that is 50 percent more efficient frequently leave the lights on longer, negating some of the energy savings from greater efficiency. This is called an energy efficiency rebound. Sometimes these mechanisms even bring about net increases in energy use known as “backfires.”

Rebounds have a direct implication for energy efficiency mandates and incentives. If rebounds are substantial, efficiency policies will be less effective at reducing air pollutants, for example, as any energy “saved” can easily find other uses, and energy consumption may even increase in the event of backfires. This paper explores the literature on energy efficiency rebounds and provides a framework for how to think about energy efficiency policy.

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