Abstract This research estimates the direct and indirect rebound effect of energy efficiency in households for the EU-27 countries (the first twenty-seven Member States of the European Union). A hybrid methodology that combines econometric estimates, environmental extended input-output analysis and re-spending models has been developed. Although most of the economies present values below 100%, there are seven countries situated above this critical threshold. By weighting individual estimates by GDP, an average value for the overall EU-27 economy has been found between 73.62% and 81.16%. These results suggest that the energy policy at the European level should be rethought if efficiency measures pursue reducing energy consumption and tackling climate change.