IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-05-11.html
   My bibliography  Save this article

Measurement of the Rebound Effect on Urban Household Energy Consumption Savings

Author

Listed:
  • Eka Sudarmaji

    (Fakultas Ekonomi and Bisnis, University of Pancasila. Jalan Srengseng Sawah, Pasar Minggu Jakarta 12640, Indonesia)

  • Sri Ambarwati

    (Fakultas Ekonomi and Bisnis, University of Pancasila. Jalan Srengseng Sawah, Pasar Minggu Jakarta 12640, Indonesia)

  • Mira Munira

    (Fakultas Ekonomi and Bisnis, University of Pancasila. Jalan Srengseng Sawah, Pasar Minggu Jakarta 12640, Indonesia)

Abstract

This research investigated consumer behavior patterns on energy conservation and energy efficiency. We investigated the factors that influence the rebound effect based on common characteristics and Socio-economic household characteristics in urban communities. This paper also explored the conservation of electricity through the idea of "nudge." The authors used the word "encouragement" in the chosen architectural program, designed to reduce household electricity consumption so that the rebound effect did not occur in household consumption. By utilizing the 'social norms and curtailment,' households given a "nudge" can save more on their electricity consumption costs. The condition of "nudge" that we included was through information on the costs incurred by households, 'social norms and curtailment,' and energy efficiency through replacing conventional lamps with energy-efficient lamps. The research took place in urban areas in the Bantul, Jogjakarta, between December 2021 and April 2022. Sixty-two respondents divide into two groups of households, i.e., observe households (self-selected) and control households (randomly selected). Both observe and control households must have an active electricity account for at least one year and have owned a house between 50 and 200 square meters. The model used a t-paired sample through the "Non-Equivalent Groups Design" (NEGD) framework for the two comparisons. The research found that 'social norms and curtailment' can reduce household electricity consumption, has cost savings over electricity consumption on average to 16.3049% for three months, and no rebound effect on savings happened.

Suggested Citation

  • Eka Sudarmaji & Sri Ambarwati & Mira Munira, 2022. "Measurement of the Rebound Effect on Urban Household Energy Consumption Savings," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 88-100, September.
  • Handle: RePEc:eco:journ2:2022-05-11
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/13426/6904
    Download Restriction: no

    File URL: https://www.econjournals.com/index.php/ijeep/article/view/13426
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    2. Dora L. Costa & Matthew E. Kahn, 2013. "Energy Conservation “Nudges” And Environmentalist Ideology: Evidence From A Randomized Residential Electricity Field Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 680-702, June.
    3. Curtis, Jim & Walton, Andrea & Dodd, Michael, 2017. "Understanding the potential of facilities managers to be advocates for energy efficiency retrofits in mid-tier commercial office buildings," Energy Policy, Elsevier, vol. 103(C), pages 98-104.
    4. Evonne Miller & Laurie Buys, 2008. "Retrofitting commercial office buildings for sustainability: tenants' perspectives," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 26(6), pages 552-561, September.
    5. A. Greening, Lorna & Greene, David L. & Difiglio, Carmen, 2000. "Energy efficiency and consumption -- the rebound effect -- a survey," Energy Policy, Elsevier, vol. 28(6-7), pages 389-401, June.
    6. Ellen Enkel & John Bell & Hannah Hogenkamp, 2011. "Open Innovation Maturity Framework," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 15(06), pages 1161-1189.
    7. Eka Sudarmaji & Noer Azam Achsani & Yandra Arkeman & Idqan Fahmi, 2021. "Can Energy Intensity Impede the CO2 Emissions in Indonesia? LMDI-Decomposition Index and ARDL: Comparison between Indonesia and ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 308-318.
    8. Banfi, Silvia & Farsi, Mehdi & Filippini, Massimo & Jakob, Martin, 2008. "Willingness to pay for energy-saving measures in residential buildings," Energy Economics, Elsevier, vol. 30(2), pages 503-516, March.
    9. Heesen, Florian & Madlener, Reinhard, 2016. "Technology Acceptance as Part of the Energy Performance Gap in Energy-Efficient Retrofitted Dwellings," FCN Working Papers 25/2014, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    10. David I. Stern, 2017. "How accurate are energy intensity projections?," Climatic Change, Springer, vol. 143(3), pages 537-545, August.
    11. Stephenson, Janet & Barton, Barry & Carrington, Gerry & Gnoth, Daniel & Lawson, Rob & Thorsnes, Paul, 2010. "Energy cultures: A framework for understanding energy behaviours," Energy Policy, Elsevier, vol. 38(10), pages 6120-6129, October.
    12. Mills, Bradford & Schleich, Joachim, 2012. "Residential energy-efficient technology adoption, energy conservation, knowledge, and attitudes: An analysis of European countries," Energy Policy, Elsevier, vol. 49(C), pages 616-628.
    13. Fernández González, P. & Landajo, M. & Presno, M.J., 2014. "Multilevel LMDI decomposition of changes in aggregate energy consumption. A cross country analysis in the EU-27," Energy Policy, Elsevier, vol. 68(C), pages 576-584.
    14. Eka Sudarmaji & Noer Azam Achsani & Yandra Arkeman & Idqan Fahmi, 2022. "Decomposition Factors Household Energy Subsidy Consumption in Indonesia: Kaya Identity and Logarithmic Mean Divisia Index Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 355-364.
    15. Horne, Christine & Kennedy, Emily Huddart, 2017. "The power of social norms for reducing and shifting electricity use," Energy Policy, Elsevier, vol. 107(C), pages 43-52.
    16. Khanna, Nina Zheng & Guo, Jin & Zheng, Xinye, 2016. "Effects of demand side management on Chinese household electricity consumption: Empirical findings from Chinese household survey," Energy Policy, Elsevier, vol. 95(C), pages 113-125.
    17. Todd Gerarden & Richard G. Newell & Robert N. Stavins, 2015. "Deconstructing the Energy-Efficiency Gap: Conceptual Frameworks and Evidence," American Economic Review, American Economic Association, vol. 105(5), pages 183-186, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Setia Damayanti & Eka Sudarmaji & Herlan Masrio, 2024. "The Critical Role of Energy Intensity in Decarbonizing ASEAN: Integrating Growth and Emissions Reductions," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 247-259, May.
    2. Lia Marchi & Jacopo Gaspari, 2023. "Energy Conservation at Home: A Critical Review on the Role of End-User Behavior," Energies, MDPI, vol. 16(22), pages 1-22, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phu Nguyen-Van & Anne Stenger & Tuyen Tiet, 2021. "Social incentive factors in interventions promoting sustainable behaviors: A meta-analysis," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-27, December.
    2. Schleich, Joachim & Gassmann, Xavier & Faure, Corinne & Meissner, Thomas, 2016. "Making the implicit explicit: A look inside the implicit discount rate," Energy Policy, Elsevier, vol. 97(C), pages 321-331.
    3. Drivas, Kyriakos & Rozakis, Stelios & Xesfingi, Sofia, 2019. "The effect of house energy efficiency programs on the extensive and intensive margin of lower-income households’ investment behavior," Energy Policy, Elsevier, vol. 128(C), pages 607-615.
    4. Sachs, Julia & Meng, Yiming & Giarola, Sara & Hawkes, Adam, 2019. "An agent-based model for energy investment decisions in the residential sector," Energy, Elsevier, vol. 172(C), pages 752-768.
    5. Lin, Boqiang & Lan, Tianxu, 2023. "Progress of increasing-block electricity pricing policy implementation in China's first-tier cities and the impact of resident policy perception," Energy Policy, Elsevier, vol. 177(C).
    6. Schmidt, Stephan & Weigt, Hannes, 2013. "A Review on Energy Consumption from a Socio-Economic Perspective: Reduction through Energy Efficiency and Beyond," Working papers 2013/15, Faculty of Business and Economics - University of Basel.
    7. Šćepanović, Sanja & Warnier, Martijn & Nurminen, Jukka K., 2017. "The role of context in residential energy interventions: A meta review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1146-1168.
    8. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    9. Filippo Corsini & Rafael Laurenti & Franziska Meinherz & Francesco Paolo Appio & Luca Mora, 2019. "The Advent of Practice Theories in Research on Sustainable Consumption: Past, Current and Future Directions of the Field," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    10. Katris, Antonios & Turner, Karen, 2021. "Can different approaches to funding household energy efficiency deliver on economic and social policy objectives? ECO and alternatives in the UK," Energy Policy, Elsevier, vol. 155(C).
    11. Kowalska-Pyzalska, Anna & Maciejowska, Katarzyna & Suszczyński, Karol & Sznajd-Weron, Katarzyna & Weron, Rafał, 2014. "Turning green: Agent-based modeling of the adoption of dynamic electricity tariffs," Energy Policy, Elsevier, vol. 72(C), pages 164-174.
    12. Dienes, Christian, 2015. "Actions and intentions to pay for climate change mitigation: Environmental concern and the role of economic factors," Ecological Economics, Elsevier, vol. 109(C), pages 122-129.
    13. Guo Li & Wenling Liu & Zhaohua Wang & Mengqi Liu, 2017. "An empirical examination of energy consumption, behavioral intention, and situational factors: evidence from Beijing," Annals of Operations Research, Springer, vol. 255(1), pages 507-524, August.
    14. Lianne Foti & Avis Devine, 2019. "High Involvement and Ethical Consumption: A Study of the Environmentally Certified Home Purchase Decision," Sustainability, MDPI, vol. 11(19), pages 1-11, September.
    15. Noelle Greenwood & Peter Warren, 2022. "The role of climate finance beyond renewables: Behavioural insights," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(8), pages 1570-1586, November.
    16. Pedro Linares & Xavier Labandeira, 2010. "Energy Efficiency: Economics And Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 573-592, July.
    17. Gordon, Joel A. & Balta-Ozkan, Nazmiye & Nabavi, Seyed Ali, 2022. "Homes of the future: Unpacking public perceptions to power the domestic hydrogen transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    18. Galarraga, Ibon & González-Eguino, Mikel & Markandya, Anil, 2011. "Willingness to pay and price elasticities of demand for energy-efficient appliances: Combining the hedonic approach and demand systems," Energy Economics, Elsevier, vol. 33(S1), pages 66-74.
    19. Nguyen, The Ninh & Lobo, Antonio & Greenland, Steven, 2016. "Pro-environmental purchase behaviour: The role of consumers' biospheric values," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 98-108.
    20. Imran Hossain & Maria Fekete-Farkas & Md. Nekmahmud, 2022. "Purchase Behavior of Energy-Efficient Appliances Contribute to Sustainable Energy Consumption in Developing Country: Moral Norms Extension of the Theory of Planned Behavior," Energies, MDPI, vol. 15(13), pages 1-20, June.

    More about this item

    Keywords

    Rebound Effect; Households Energy Efficiency; Nudge; Social Norms; Curtailments.;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2022-05-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.