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Energy efficiency and household behavior: the rebound effect in the residential sector

The rebound effect in the residential sector

descriptionPublicationkeyboard_double_arrow_right Article , Journal 01 Aug 2017Publisher:WileyJournal:The RAND Journal of Economics, volume 48, pages 749-782 (issn: 0741-6261, eissn: 1756-2171,

Authors: Erdal Aydin; Dirk Brounen; Nils Kok;

doi: 10.1111/1756-2171.12190

Energy efficiency and household behavior: the rebound effect in the residential sector

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Abstract

This article investigates the rebound effect in residential heating, using a sample of 563,000 households in the Netherlands. Using instrumental variable and fixed‐effects approaches, we address potential endogeneity concerns. The results show a rebound effect of 26.7% among homeowners, and 41.3% among tenants. We corroborate the findings through a quasiexperimental analysis, using a large retrofit subsidy program. We also document significant heterogeneity in the rebound effect, determined by household wealth and income, and the actual energy use intensity. The findings in this article confirm the important role of household behavior in determining the outcomes of energy efficiency improvement programs.

Related Organizations

Maastricht University
Netherlands
Tilburg University
Netherlands

Keywords

rebound effect, 2 International, 6 Data source, consumer behavior, Q51 - Valuation of Environmental Effects, Energy efficiency, D12 - Consumer Economics: Empirical Analysis, R21 - Housing Demand

Impact byBIP!

	citations This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	94
	popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.	Top 1%
	influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	Top 10%
	impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.	Top 1%