IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v301y2021ics0306261921008060.html
   My bibliography  Save this article

Measurement of the direct rebound effect of residential electricity consumption: An empirical study based on the China family panel studies

Author

Listed:
  • Lin, Boqiang
  • Zhu, Penghu

Abstract

The rebound effect is a potential threat to energy efficiency related policies to save energy. Based on data from China family panel studies over the period 2010–2018, this paper measures the energy efficiency and direct rebound effect of residential electricity consumption by using the stochastic energy demand frontier model. The result shows that the average value of efficiency is 0.491, and the average rebound effect is 48%. It means that there is still room for improvement in China’s household electricity consumption efficiency. But the expected electricity- saving after improving efficiency can only achieve 52%. Besides, we find that electricity price and household size have a negative impact on the rebound effect, while the impact of income is inverted U-shaped. Finally, the rebound effect varies between before and after the implementation of the increasing block pricing policy, considering rural and urban residents and different regions. These findings provide some policy implications for the residential electricity pricing system under the background of energy conservation and climate change.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:appene:v:301:y:2021:i:c:s0306261921008060
    DOI: 10.1016/j.apenergy.2021.117409
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261921008060
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2021.117409?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. Wang, Zhaohua & Lu, Milin & Wang, Jian-Cai, 2014. "Direct rebound effect on urban residential electricity use: An empirical study in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 124-132.
    2. Filippini, Massimo & Hunt, Lester C., 2012. "US residential energy demand and energy efficiency: A stochastic demand frontier approach," Energy Economics, Elsevier, vol. 34(5), pages 1484-1491.
    3. Chen, Zhenni & Du, Huibin & Li, Jianglong & Southworth, Frank & Ma, Shoufeng, 2019. "Achieving low-carbon urban passenger transport in China: Insights from the heterogeneous rebound effect," Energy Economics, Elsevier, vol. 81(C), pages 1029-1041.
    4. Massimo Filippini & Lester C. Hunt, 2011. "Energy Demand and Energy Efficiency in the OECD Countries: A Stochastic Demand Frontier Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 59-80.
    5. Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
    6. Shao, Shuai & Huang, Tao & Yang, Lili, 2014. "Using latent variable approach to estimate China׳s economy-wide energy rebound effect over 1954–2010," Energy Policy, Elsevier, vol. 72(C), pages 235-248.
    7. Liu, Chang & Lin, Boqiang, 2020. "Is increasing-block electricity pricing effectively carried out in China? A case study in Shanghai and Shenzhen," Energy Policy, Elsevier, vol. 138(C).
    8. Erdal Aydin & Nils Kok & Dirk Brounen, 2017. "Energy efficiency and household behavior: the rebound effect in the residential sector," RAND Journal of Economics, RAND Corporation, vol. 48(3), pages 749-782, August.
    9. Du, Qiang & Han, Xiao & Li, Yi & Li, Zhe & Xia, Bo & Guo, Xiqian, 2021. "The energy rebound effect of residential buildings: Evidence from urban and rural areas in China," Energy Policy, Elsevier, vol. 153(C).
    10. 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.
    11. Wei, Taoyuan, 2010. "A general equilibrium view of global rebound effects," Energy Economics, Elsevier, vol. 32(3), pages 661-672, May.
    12. 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.
    13. Lin, Boqiang & Jiang, Zhujun, 2012. "Designation and influence of household increasing block electricity tariffs in China," Energy Policy, Elsevier, vol. 42(C), pages 164-173.
    14. Amjadi, Golnaz & Lundgren, Tommy & Persson, Lars, 2018. "The Rebound Effect in Swedish Heavy Industry," Energy Economics, Elsevier, vol. 71(C), pages 140-148.
    15. 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.
    16. 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.
    17. Kenneth Gillingham & David Rapson & Gernot Wagner, 2016. "The Rebound Effect and Energy Efficiency Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 68-88.
    18. Kerui Du, Shuai Shao, and Zheming Yan, 2021. "Urban Residential Energy Demand and Rebound Effect in China: A Stochastic Energy Demand Frontier Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    19. Moshiri, Saeed & Aliyev, Kamil, 2017. "Rebound effect of efficiency improvement in passenger cars on gasoline consumption in Canada," Ecological Economics, Elsevier, vol. 131(C), pages 330-341.
    20. Saunders, Harry D., 2008. "Fuel conserving (and using) production functions," Energy Economics, Elsevier, vol. 30(5), pages 2184-2235, September.
    21. Su, Yu-Wen, 2019. "Residential electricity demand in Taiwan: Consumption behavior and rebound effect," Energy Policy, Elsevier, vol. 124(C), pages 36-45.
    22. Sun, Bixuan, 2018. "Heterogeneous direct rebound effect: Theory and evidence from the Energy Star program," Energy Economics, Elsevier, vol. 69(C), pages 335-349.
    23. Broadstock, David C. & Li, Jiajia & Zhang, Dayong, 2016. "Efficiency snakes and energy ladders: A (meta-)frontier demand analysis of electricity consumption efficiency in Chinese households," Energy Policy, Elsevier, vol. 91(C), pages 383-396.
    24. Li, Jianglong & Liu, Hongxun & Du, Kerui, 2019. "Does market-oriented reform increase energy rebound effect? Evidence from China's regional development," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    25. Thomas, Brinda A. & Azevedo, Inês L., 2013. "Estimating direct and indirect rebound effects for U.S. households with input–output analysis Part 1: Theoretical framework," Ecological Economics, Elsevier, vol. 86(C), pages 199-210.
    26. Barkhordar, Zahra A., 2019. "Evaluating the economy-wide effects of energy efficient lighting in the household sector of Iran," Energy Policy, Elsevier, vol. 127(C), pages 125-133.
    27. Wang, Zhaohua & Sun, Yefei & Wang, Bo, 2020. "Policy cognition is more effective than step tariff in promoting electricity saving behaviour of residents," Energy Policy, Elsevier, vol. 139(C).
    28. Lin, Boqiang & Liu, Xia, 2013. "Electricity tariff reform and rebound effect of residential electricity consumption in China," Energy, Elsevier, vol. 59(C), pages 240-247.
    29. Chitnis, Mona & Sorrell, Steve, 2015. "Living up to expectations: Estimating direct and indirect rebound effects for UK households," Energy Economics, Elsevier, vol. 52(S1), pages 100-116.
    30. Li, Jianglong & Yang, Lisha & Long, Houyin, 2018. "Climatic impacts on energy consumption: Intensive and extensive margins," Energy Economics, Elsevier, vol. 71(C), pages 332-343.
    31. Jin, Sang-Hyeon, 2007. "The effectiveness of energy efficiency improvement in a developing country: Rebound effect of residential electricity use in South Korea," Energy Policy, Elsevier, vol. 35(11), pages 5622-5629, November.
    32. Ouyang, Jinlong & Long, Enshen & Hokao, Kazunori, 2010. "Rebound effect in Chinese household energy efficiency and solution for mitigating it," Energy, Elsevier, vol. 35(12), pages 5269-5276.
    33. 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.
    34. 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.
    35. Wang, Zhaohua & Han, Bai & Lu, Milin, 2016. "Measurement of energy rebound effect in households: Evidence from residential electricity consumption in Beijing, China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 852-861.
    36. Lin, Boqiang & Du, Kerui, 2015. "Measuring energy rebound effect in the Chinese economy: An economic accounting approach," Energy Economics, Elsevier, vol. 50(C), pages 96-104.
    37. Orea, Luis & Llorca, Manuel & Filippini, Massimo, 2015. "A new approach to measuring the rebound effect associated to energy efficiency improvements: An application to the US residential energy demand," Energy Economics, Elsevier, vol. 49(C), pages 599-609.
    38. Zhang, Dayong & Li, Jiajia & Han, Phoumin, 2019. "A multidimensional measure of energy poverty in China and its impacts on health: An empirical study based on the China family panel studies," Energy Policy, Elsevier, vol. 131(C), pages 72-81.
    39. Lin, Boqiang & Wang, Yao, 2020. "Does energy poverty really exist in China? From the perspective of residential electricity consumption," Energy Policy, Elsevier, vol. 143(C).
    40. Sorrell, Steve & Dimitropoulos, John & Sommerville, Matt, 2009. "Empirical estimates of the direct rebound effect: A review," Energy Policy, Elsevier, vol. 37(4), pages 1356-1371, April.
    41. 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.
    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. Zhu, Penghu & Lin, Boqiang, 2022. "Do the elderly consume more energy? Evidence from the retirement policy in urban China," Energy Policy, Elsevier, vol. 165(C).
    2. Baxter Williams & Daniel Bishop & Patricio Gallardo & J. Geoffrey Chase, 2023. "Demand Side Management in Industrial, Commercial, and Residential Sectors: A Review of Constraints and Considerations," Energies, MDPI, vol. 16(13), pages 1-28, July.
    3. Zhi Li & Lu Lv & Zuo Zhang, 2022. "Research on the Characteristics and Influencing Factors of Chinese Urban Households’ Electricity Consumption Efficiency," Energies, MDPI, vol. 15(20), pages 1-15, October.
    4. Kong, Li & Hu, Guangwen & Mu, Xianzhong & Li, Guohao & Zhang, Zheng, 2023. "The energy rebound effect in households: Evidence from urban and rural areas in Beijing," Applied Energy, Elsevier, vol. 343(C).
    5. Chen, Peipei & Wu, Yi & Zhong, Honglin & Long, Yin & Meng, Jing, 2022. "Exploring household emission patterns and driving factors in Japan using machine learning methods," Applied Energy, Elsevier, vol. 307(C).
    6. Meng, Yan & Fan, Shuai & Shen, Yu & Xiao, Jucheng & He, Guangyu & Li, Zuyi, 2023. "Transmission and distribution network-constrained large-scale demand response based on locational customer directrix load for accommodating renewable energy," Applied Energy, Elsevier, vol. 350(C).
    7. Maliyamu Abudureheman & Qingzhe Jiang & Xiucheng Dong & Cong Dong, 2022. "CO 2 Emissions in China: Does the Energy Rebound Matter?," Energies, MDPI, vol. 15(12), pages 1-25, June.
    8. Ke Jiang & Ran Xing & Zhihan Luo & Yaojie Li & Jinghang Wang & Wenxiao Zhang & Yaqi Zhu & Yatai Men & Guofeng Shen & Shu Tao, 2024. "Unclean but affordable solid fuels effectively sustained household energy equity," Nature Communications, Nature, vol. 15(1), pages 1-13, December.
    9. Peng, Hua-Rong & Qin, Xiong-Feng, 2024. "Digitalization as a trigger for a rebound effect of electricity use," Energy, Elsevier, vol. 300(C).
    10. Karakaya, Etem & Alataş, Sedat & Erkara, Elif & Mert, Betül & Akdoğan, Tuğba & Hiçyılmaz, Burcu, 2024. "The rebound effect of material and energy efficiency for the EU and its major trading partners," Energy Economics, Elsevier, vol. 134(C).
    11. Penghu Zhu & Boqiang Lin, 2022. "Vanishing Happiness: How Does Pollution Information Disclosure Affect Life Satisfaction?," IJERPH, MDPI, vol. 19(15), pages 1-19, August.
    12. Wei, Kai & Zhang, Zuopeng Justin & Lin, Boqiang, 2024. "Does news propaganda really affect residents’ electricity rebound effect: New evidence of non-price information," Energy, Elsevier, vol. 300(C).
    13. Guang, Fengtao & Wen, Le & Sharp, Basil, 2022. "Energy efficiency improvements and industry transition: An analysis of China's electricity consumption," Energy, Elsevier, vol. 244(PA).
    14. Zha, Donglan & Chen, Qian & Wang, Lijun, 2022. "Exploring carbon rebound effects in Chinese households’ consumption: A simulation analysis based on a multi-regional input–output framework," Applied Energy, Elsevier, vol. 313(C).
    15. Lin, Boqiang & Huang, Chenchen, 2023. "Nonlinear relationship between digitization and energy efficiency: Evidence from transnational panel data," Energy, Elsevier, vol. 276(C).
    16. Shao, Qinglong & Kostka, Genia, 2023. "The COVID-19 pandemic and deepening digital inequalities in China," Telecommunications Policy, Elsevier, vol. 47(10).
    17. Wang, Xiaolei & Wei, Chunxin & Wang, Yanhua, 2022. "Does the current tiered electricity pricing structure still restrain electricity consumption in China's residential sector?," Energy Policy, Elsevier, vol. 165(C).
    18. Zhu, Yuke & Lan, Mudan, 2023. "Digital economy and carbon rebound effect: Evidence from Chinese cities," Energy Economics, Elsevier, vol. 126(C).
    19. Cui, Yin, 2023. "The influencing factors of carrying capacity of urban electricity infrastructure: Case study of six Chinese mega-cities," Energy, Elsevier, vol. 282(C).
    20. 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).
    21. Li, Jiapeng & Zuo, Xuguang & Sun, Chuanwang, 2023. "The effect of urban renewal on residential energy consumption expenditure--the example of shantytown renovation," Energy Policy, Elsevier, vol. 183(C).
    22. Kong, Li & Mu, Xianzhong & Hu, Guangwen & Tu, Chuang, 2023. "Will energy efficiency improvements reduce energy consumption? Perspective of rebound effect and evidence from beijing," Energy, Elsevier, vol. 263(PA).

    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. 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).
    2. 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.
    3. 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).
    4. Wei, Kai & Zhang, Zuopeng Justin & Lin, Boqiang, 2024. "Does news propaganda really affect residents’ electricity rebound effect: New evidence of non-price information," Energy, Elsevier, vol. 300(C).
    5. 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).
    6. 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.
    7. Li, Jianglong & Li, Aijun & Xie, Xuan, 2018. "Rebound effect of transportation considering additional capital costs and input-output relationships: The role of subsistence consumption and unmet demand," Energy Economics, Elsevier, vol. 74(C), pages 441-455.
    8. Khoshkalam Khosroshahi, Musa & Sayadi, Mohammad, 2020. "Tracking the sources of rebound effect resulting from the efficiency improvement in petrol, diesel, natural gas and electricity consumption; A CGE analysis for Iran," Energy, Elsevier, vol. 197(C).
    9. Jarke-Neuert, Johannes & Perino, Grischa, 2020. "Energy efficiency promotion backfires under cap-and-trade," Resource and Energy Economics, Elsevier, vol. 62(C).
    10. 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.
    11. Meng, Ming & Li, Xinxin, 2022. "Evaluating the direct rebound effect of electricity consumption: An empirical analysis of the provincial level in China," Energy, Elsevier, vol. 239(PB).
    12. Chen, Qian & Zha, Donglan & Wang, Lijun & Yang, Guanglei, 2022. "The direct CO2 rebound effect in households: Evidence from China's provinces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 155(C).
    13. 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.
    14. Martín Bordon Lesme & Jaume Freire-González & Emilio Padilla Rosa, 2020. "The Direct Rebound Effect of Electricity Energy Services in Spanish Households: Evidence from Error Correction Model and System GMM estimates," Working Papers wpdea2002, Department of Applied Economics at Universitat Autonoma of Barcelona.
    15. 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.
    16. Kong, Li & Mu, Xianzhong & Hu, Guangwen & Tu, Chuang, 2023. "Will energy efficiency improvements reduce energy consumption? Perspective of rebound effect and evidence from beijing," Energy, Elsevier, vol. 263(PA).
    17. Du, Qiang & Han, Xiao & Li, Yi & Li, Zhe & Xia, Bo & Guo, Xiqian, 2021. "The energy rebound effect of residential buildings: Evidence from urban and rural areas in China," Energy Policy, Elsevier, vol. 153(C).
    18. Li, Ke & Lin, Boqiang, 2015. "Heterogeneity in rebound effects: Estimated results and impact of China’s fossil-fuel subsidies," Applied Energy, Elsevier, vol. 149(C), pages 148-160.
    19. Baležentis, Tomas & Butkus, Mindaugas & Štreimikienė, Dalia & Shen, Zhiyang, 2021. "Exploring the limits for increasing energy efficiency in the residential sector of the European Union: Insights from the rebound effect," Energy Policy, Elsevier, vol. 149(C).
    20. Kong, Li & Hu, Guangwen & Mu, Xianzhong & Li, Guohao & Zhang, Zheng, 2023. "The energy rebound effect in households: Evidence from urban and rural areas in Beijing," Applied Energy, Elsevier, vol. 343(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:301:y:2021:i:c:s0306261921008060. 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.