IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v233-234y2019ip44-61.html
   My bibliography  Save this article

A game theoretic approach for assessing residential energy-efficiency program considering rebound, consumer behavior, and government policies

Author

Listed:
  • Safarzadeh, Soroush
  • Rasti-Barzoki, Morteza

Abstract

In recent years, due to the sustainability concerns, energy-efficiency programs that address eco-friendly issues such as energy efficiency and clean production have increased in the world. Furthermore, eco-efficient appliances, as the direct result of research and development (R&D) activities have become a popular topic in the sustainability programs of the most developed countries due to their high-tech features. In this paper, we discuss a residential energy-efficiency program for the new energy-efficient appliances and related energy consumption, simultaneously, in a sustainable supply chain consists of the energy supplier, manufacturer, and the government. Also, we consider the technological rebound effect of the efficiency improvement, consumer behavior, and ability to innovate of the manufacturer in the problem, as the novel assumptions. To solve the problem, we propose a multi-stage game model using the Bertrand model. Also, we investigate three structures, based on the Nash and leader-follower games as the scenarios. The findings reveal the equilibrium pricing decisions for the supply-chain players to maximize their profits, besides the best energy policy and supply-chain structure for the efficient management of household energy consumption. More precisely, the first scenario with the Nash structure between the manufacturer and energy supplier has the most advantages and the least disadvantages than the other scenarios. Also, the manufacturer subsidy has the most performance in the discussed energy-efficiency program. Finally, the present study shows the significant effects of considering the energy rebound, innovation abilities of the manufacturer, and consumer behavior assumptions in the household energy problems.

Suggested Citation

  • Safarzadeh, Soroush & Rasti-Barzoki, Morteza, 2019. "A game theoretic approach for assessing residential energy-efficiency program considering rebound, consumer behavior, and government policies," Applied Energy, Elsevier, vol. 233, pages 44-61.
    • Handle: RePEc:eee:appene:v:233-234:y:2019:i::p:44-61
    DOI: 10.1016/j.apenergy.2018.10.032
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261918315861
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2018.10.032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Li, Ming-Jia & Tao, Wen-Quan, 2017. "Review of methodologies and polices for evaluation of energy efficiency in high energy-consuming industry," Applied Energy, Elsevier, vol. 187(C), pages 203-215.
    2. Klaus CONRAD, 2005. "Price Competition and Product Differentiation when Goods have Network Effects," Industrial Organization 0502002, University Library of Munich, Germany.
    3. Zhang, Yue-Jun & Peng, Yu-Lu & Ma, Chao-Qun & Shen, Bo, 2017. "Can environmental innovation facilitate carbon emissions reduction? Evidence from China," Energy Policy, Elsevier, vol. 100(C), pages 18-28.
    4. Tomohiro Tasaki & Masaharu Motoshita & Hiroyuki Uchida & Yasufumi Suzuki, 2013. "Assessing the Replacement of Electrical Home Appliances for the Environment," Journal of Industrial Ecology, Yale University, vol. 17(2), pages 290-298, April.
    5. Park, Eunil & Kwon, Sang Jib, 2017. "What motivations drive sustainable energy-saving behavior?: An examination in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 494-502.
    6. Zhou, Wenhui & Huang, Weixiang, 2016. "Contract designs for energy-saving product development in a monopoly," European Journal of Operational Research, Elsevier, vol. 250(3), pages 902-913.
    7. Palmer, Mark & Truong, Yann, 2017. "The Impact of Technological Green New Product Introductions on Firm Profitability," Ecological Economics, Elsevier, vol. 136(C), pages 86-93.
    8. Gerke, Brian F. & McNeil, Michael A. & Tu, Thomas, 2017. "The International Database of Efficient Appliances (IDEA): A new tool to support appliance energy-efficiency deployment," Applied Energy, Elsevier, vol. 205(C), pages 453-464.
    9. Galarraga, Ibon & Abadie, Luis M. & Kallbekken, Steffen, 2016. "Designing incentive schemes for promoting energy-efficient appliances: A new methodology and a case study for Spain," Energy Policy, Elsevier, vol. 90(C), pages 24-36.
    10. Cicconi, Paolo & Landi, Daniele & Germani, Michele & Russo, Anna Costanza, 2017. "A support approach for the conceptual design of energy-efficient cooker hoods," Applied Energy, Elsevier, vol. 206(C), pages 222-239.
    11. Zheng, Xinye & Wei, Chu & Qin, Ping & Guo, Jin & Yu, Yihua & Song, Feng & Chen, Zhanming, 2014. "Characteristics of residential energy consumption in China: Findings from a household survey," Energy Policy, Elsevier, vol. 75(C), pages 126-135.
    12. Yi He & Qingyun Xu & Bing Xu & Pengkun Wu, 2016. "Supply chain coordination in quality improvement with reference effects," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(9), pages 1158-1168, September.
    13. Fumo, Nelson & Rafe Biswas, M.A., 2015. "Regression analysis for prediction of residential energy consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 332-343.
    14. Mizobuchi, Kenichi & Takeuchi, Kenji, 2016. "Replacement or additional purchase: The impact of energy-efficient appliances on household electricity saving under public pressures," Energy Policy, Elsevier, vol. 93(C), pages 137-148.
    15. Fikru, Mahelet G. & Gautier, Luis, 2015. "The impact of weather variation on energy consumption in residential houses," Applied Energy, Elsevier, vol. 144(C), pages 19-30.
    16. Craig, Christopher A. & Feng, Song, 2017. "Exploring utility organization electricity generation, residential electricity consumption, and energy efficiency: A climatic approach," Applied Energy, Elsevier, vol. 185(P1), pages 779-790.
    17. Li, Ke & Jiang, Zhujun, 2016. "The impacts of removing energy subsidies on economy-wide rebound effects in China: An input-output analysis," Energy Policy, Elsevier, vol. 98(C), pages 62-72.
    18. Dimitropoulos, John, 2007. "Energy productivity improvements and the rebound effect: An overview of the state of knowledge," Energy Policy, Elsevier, vol. 35(12), pages 6354-6363, December.
    19. Hafezalkotob, Ashkan, 2017. "Competition, cooperation, and coopetition of green supply chains under regulations on energy saving levels," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 228-250.
    20. de la Rue du Can, Stephane & Leventis, Greg & Phadke, Amol & Gopal, Anand, 2014. "Design of incentive programs for accelerating penetration of energy-efficient appliances," Energy Policy, Elsevier, vol. 72(C), pages 56-66.
    21. Shi, Xunpeng, 2014. "Setting effective mandatory energy efficiency standards and labelling regulations: A review of best practices in the Asia Pacific region," Applied Energy, Elsevier, vol. 133(C), pages 135-143.
    22. Zhang, Yue-Jun & Peng, Hua-Rong & Su, Bin, 2017. "Energy rebound effect in China's Industry: An aggregate and disaggregate analysis," Energy Economics, Elsevier, vol. 61(C), pages 199-208.
    23. Albino, Vito & Ardito, Lorenzo & Dangelico, Rosa Maria & Messeni Petruzzelli, Antonio, 2014. "Understanding the development trends of low-carbon energy technologies: A patent analysis," Applied Energy, Elsevier, vol. 135(C), pages 836-854.
    24. Tim Cooper, 1994. "The durability of consumer durables," Business Strategy and the Environment, Wiley Blackwell, vol. 3(1), pages 23-30.
    25. Zhang, Ming & Song, Yan & Li, Peng & Li, Huanan, 2016. "Study on affecting factors of residential energy consumption in urban and rural Jiangsu," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 330-337.
    26. Meltem Ucal, 2017. "Energy-saving behavior of Turkish women: A consumer survey on the use of home appliances," Energy & Environment, , vol. 28(7), pages 775-807, November.
    27. Saidur, R. & Masjuki, H.H. & Jamaluddin, M.Y., 2007. "An application of energy and exergy analysis in residential sector of Malaysia," Energy Policy, Elsevier, vol. 35(2), pages 1050-1063, February.
    28. Belaïd, Fateh & Bakaloglou, Salomé & Roubaud, David, 2018. "Direct rebound effect of residential gas demand: Empirical evidence from France," Energy Policy, Elsevier, vol. 115(C), pages 23-31.
    29. Chen, Han & Huang, Ye & Shen, Huizhong & Chen, Yilin & Ru, Muye & Chen, Yuanchen & Lin, Nan & Su, Shu & Zhuo, Shaojie & Zhong, Qirui & Wang, Xilong & Liu, Junfeng & Li, Bengang & Tao, Shu, 2016. "Modeling temporal variations in global residential energy consumption and pollutant emissions," Applied Energy, Elsevier, vol. 184(C), pages 820-829.
    30. Zhang, Yue-Jun & Peng, Hua-Rong, 2017. "Exploring the direct rebound effect of residential electricity consumption: An empirical study in China," Applied Energy, Elsevier, vol. 196(C), pages 132-141.
    31. Amjadi, Golnaz & Lundgren, Tommy & Persson, Lars, 2018. "The Rebound Effect in Swedish Heavy Industry," Energy Economics, Elsevier, vol. 71(C), pages 140-148.
    32. Liu, Jingru & Sun, Xin & Lu, Bin & Zhang, Yunkun & Sun, Rui, 2016. "The life cycle rebound effect of air-conditioner consumption in China," Applied Energy, Elsevier, vol. 184(C), pages 1026-1032.
    Full references (including those not matched with items on IDEAS)

    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. Safarzadeh, Soroush & Rasti-Barzoki, Morteza & Hejazi, Seyed Reza & Piran, Md Jalil, 2020. "A game theoretic approach for the duopoly pricing of energy-efficient appliances regarding innovation protection and social welfare," Energy, Elsevier, vol. 200(C).
    2. Safarzadeh, Soroush & Rasti-Barzoki, Morteza, 2019. "A game theoretic approach for pricing policies in a duopolistic supply chain considering energy productivity, industrial rebound effect, and government policies," Energy, Elsevier, vol. 167(C), pages 92-105.
    3. Jin, Taeyoung & Kim, Jinsoo, 2019. "A new approach for assessing the macroeconomic growth energy rebound effect," Applied Energy, Elsevier, vol. 239(C), pages 192-200.
    4. Shao, Shuai & Guo, Longfei & Yu, Mingliang & Yang, Lili & Guan, Dabo, 2019. "Does the rebound effect matter in energy import-dependent mega-cities? Evidence from Shanghai (China)," Applied Energy, Elsevier, vol. 241(C), pages 212-228.
    5. Jafari, Mahboubeh & Stern, David I. & Bruns, Stephan B., 2022. "How large is the economy-wide rebound effect in middle income countries? Evidence from Iran," Ecological Economics, Elsevier, vol. 193(C).
    6. Ouyang, Xiaoling & Yang, Yuchuan & Du, Kerui & Cheng, Zhenyu, 2022. "How does residential electricity consumption respond to electricity efficiency improvement? Evidence from 287 prefecture-level cities in China," Energy Policy, Elsevier, vol. 171(C).
    7. Wen, Fenghua & Ye, Zhengke & Yang, Huaidong & Li, Ke, 2018. "Exploring the rebound effect from the perspective of household: An analysis of China's provincial level," Energy Economics, Elsevier, vol. 75(C), pages 345-356.
    8. Lin, Boqiang & Zhu, Penghu, 2021. "Measurement of the direct rebound effect of residential electricity consumption: An empirical study based on the China family panel studies," Applied Energy, Elsevier, vol. 301(C).
    9. Safarzadeh, Soroush & Hafezalkotob, Ashkan & Jafari, Hamed, 2022. "Energy supply chain empowerment through tradable green and white certificates: A pathway to sustainable energy generation," Applied Energy, Elsevier, vol. 323(C).
    10. Safarzadeh, Soroush & Rasti-Barzoki, Morteza & Hejazi, Seyed Reza, 2020. "A review of optimal energy policy instruments on industrial energy efficiency programs, rebound effects, and government policies," Energy Policy, Elsevier, vol. 139(C).
    11. Lawal, Abiola S. & Servadio, Joseph L. & Davis, Tate & Ramaswami, Anu & Botchwey, Nisha & Russell, Armistead G., 2021. "Orthogonalization and machine learning methods for residential energy estimation with social and economic indicators," Applied Energy, Elsevier, vol. 283(C).
    12. Agyarko, Kofi A. & Opoku, Richard & Van Buskirk, Robert, 2020. "Removing barriers and promoting demand-side energy efficiency in households in Sub-Saharan Africa: A case study in Ghana," Energy Policy, Elsevier, vol. 137(C).
    13. Liu, Hongxun & Du, Kerui & Li, Jianglong, 2019. "An improved approach to estimate direct rebound effect by incorporating energy efficiency: A revisit of China's industrial energy demand," Energy Economics, Elsevier, vol. 80(C), pages 720-730.
    14. Li, Guohao & Niu, Miaomiao & Xiao, Jin & Wu, Jiaqian & Li, Jinkai, 2023. "The rebound effect of decarbonization in China’s power sector under the carbon trading scheme," Energy Policy, Elsevier, vol. 177(C).
    15. Yan, Zheming & Ouyang, Xiaoling & Du, Kerui, 2019. "Economy-wide estimates of energy rebound effect: Evidence from China's provinces," Energy Economics, Elsevier, vol. 83(C), pages 389-401.
    16. Ai, Hongshan & Wu, Xiaofei & Li, Ke, 2020. "Differentiated effects of diversified technological sources on China's electricity consumption: Evidence from the perspective of rebound effect," Energy Policy, Elsevier, vol. 137(C).
    17. Jarke-Neuert, Johannes & Perino, Grischa, 2020. "Energy efficiency promotion backfires under cap-and-trade," Resource and Energy Economics, Elsevier, vol. 62(C).
    18. Shi, Jian-hua & Han, Ying & Li, Xue-dong & Zhou, Jie-qi, 2022. "How does urbanization affect the direct rebound effect? Evidence from residential electricity consumption in China," Energy, Elsevier, vol. 239(PE).
    19. Mardones, Cristian, 2021. "Ex-post evaluation and cost-benefit analysis of a heater replacement program implemented in southern Chile," Energy, Elsevier, vol. 227(C).
    20. Gholami, M. & Barbaresi, A. & Torreggiani, D. & Tassinari, P., 2020. "Upscaling of spatial energy planning, phases, methods, and techniques: A systematic review through meta-analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).

    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:eee:appene:v:233-234:y:2019:i::p:44-61. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    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.