IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v120y2023ics0140988323001433.html
   My bibliography  Save this article

The rebound effect of solar panel adoption: Evidence from Dutch households

Author

Listed:
  • Aydın, Erdal
  • Brounen, Dirk
  • Ergün, Ahmet

Abstract

Households adopt solar panels for different reasons, but usually with a reduced electricity bill in mind. However, the access to solar power at near zero marginal costs may well induce rebound effects which shift households’ demand curve and distort the net effects of solar PV investments. By analyzing high frequency data on household electricity consumption and production, we document solar PV rebound effect of 7.7 percent, a result that is robust to different sample and model specifications. We also find that households shift their consumption to the time periods when solar electricity production is higher. The solar PV rebound effect shows heterogeneity across time and production level, with higher rebound effects during seasons characterized by higher solar irradiance.

Suggested Citation

  • Aydın, Erdal & Brounen, Dirk & Ergün, Ahmet, 2023. "The rebound effect of solar panel adoption: Evidence from Dutch households," Energy Economics, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323001433
    DOI: 10.1016/j.eneco.2023.106645
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988323001433
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2023.106645?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. J. Daniel Khazzoom, 1987. "Energy Saving Resulting from the Adoption of More Efficient Appliances," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 85-89.
    2. de Nooij, Michiel & Lieshout, Rogier & Koopmans, Carl, 2009. "Optimal blackouts: Empirical results on reducing the social cost of electricity outages through efficient regional rationing," Energy Economics, Elsevier, vol. 31(3), pages 342-347, May.
    3. Kenneth A. Small & Kurt Van Dender, 2007. "Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 25-52.
    4. Deng, Gary & Newton, Peter, 2017. "Assessing the impact of solar PV on domestic electricity consumption: Exploring the prospect of rebound effects," Energy Policy, Elsevier, vol. 110(C), pages 313-324.
    5. Bouffard, François & Kirschen, Daniel S., 2008. "Centralised and distributed electricity systems," Energy Policy, Elsevier, vol. 36(12), pages 4504-4508, December.
    6. Boccard, Nicolas & Gautier, Axel, 2021. "Solar rebound: The unintended consequences of subsidies," Energy Economics, Elsevier, vol. 100(C).
    7. 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.
    8. 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.
    9. Paul L. Joskow, 2012. "Creating a Smarter U.S. Electricity Grid," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 29-48, Winter.
    10. Qiu, Yueming & Kahn, Matthew E. & Xing, Bo, 2019. "Quantifying the rebound effects of residential solar panel adoption," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 310-341.
    11. Pepermans, G. & Driesen, J. & Haeseldonckx, D. & Belmans, R. & D'haeseleer, W., 2005. "Distributed generation: definition, benefits and issues," Energy Policy, Elsevier, vol. 33(6), pages 787-798, April.
    12. Kenichi Mizobuchi & Kenji Takeuchi, 2019. "Rebound effect across seasons: evidence from the replacement of air conditioners in Japan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 123-140, January.
    13. Lucas W. Davis & Alan Fuchs & Paul Gertler, 2014. "Cash for Coolers: Evaluating a Large-Scale Appliance Replacement Program in Mexico," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 207-238, November.
    14. Meredith Fowlie & Michael Greenstone & Catherine Wolfram, 2018. "Do Energy Efficiency Investments Deliver? Evidence from the Weatherization Assistance Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1597-1644.
    15. William C. Wheaton, 1982. "The Long-Run Structure of Transportation and Gasoline Demand," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 439-454, Autumn.
    16. Jerry A. Hausman, 1979. "Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 33-54, Spring.
    17. Grant D. Jacobsen & Matthew J. Kotchen, 2013. "Are Building Codes Effective at Saving Energy? Evidence from Residential Billing Data in Florida," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 34-49, March.
    18. De Borger, Bruno & Mulalic, Ismir & Rouwendal, Jan, 2016. "Measuring the rebound effect with micro data: A first difference approach," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 1-17.
    19. Bradley, Peter & Leach, Matthew & Torriti, Jacopo, 2013. "A review of the costs and benefits of demand response for electricity in the UK," Energy Policy, Elsevier, vol. 52(C), pages 312-327.
    20. Berkhout, Peter H. G. & Muskens, Jos C. & W. Velthuijsen, Jan, 2000. "Defining the rebound effect," Energy Policy, Elsevier, vol. 28(6-7), pages 425-432, June.
    21. Paulo Sérgio Vasconcelos & Lucio Guido Tapia Carpio, 2015. "Estimating the economic costs of electricity deficit using input–output analysis: the case of Brazil," Applied Economics, Taylor & Francis Journals, vol. 47(9), pages 916-927, February.
    22. Lucas W. Davis, 2008. "Durable goods and residential demand for energy and water: evidence from a field trial," RAND Journal of Economics, RAND Corporation, vol. 39(2), pages 530-546, June.
    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. Luka Budin & Ninoslav Holjevac & Matija Zidar & Marko Delimar, 2023. "PV Sizing and Investment Support Tool for Household Installations: A Case Study for Croatia," Sustainability, MDPI, vol. 15(16), pages 1-21, August.
    2. John List & Ioannis Pragidis & Michael Price, 2024. "Toward an Understanding of the Economics of Prosumers: Evidence from a Natural Field Experiment in Energy," Natural Field Experiments 00791, The Field Experiments Website.
    3. 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.
    4. Rydehell, Hanna & Lantz, Björn & Mignon, Ingrid & Lindahl, Johan, 2024. "The impact of solar PV subsidies on investment over time - the case of Sweden," Energy Economics, Elsevier, vol. 133(C).
    5. Liu, Diyi & Zou, Hongyang & Qiu, Yueming & Du, Huibin, 2024. "Consumer reaction to green subsidy phase-out in China: Evidence from the household photovoltaic industry," Energy Economics, Elsevier, vol. 129(C).

    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. Aydin, Erdal, 2016. "Energy conservation in the residential sector : The role of policy and market forces," Other publications TiSEM b9cedba8-1310-4097-90fb-b, Tilburg University, School of Economics and Management.
    2. Belaïd, Fateh & Youssef, Adel Ben & Lazaric, Nathalie, 2020. "Scrutinizing the direct rebound effect for French households using quantile regression and data from an original survey," Ecological Economics, Elsevier, vol. 176(C).
    3. Galvin, Ray & Dütschke, Elisabeth & Weiß, Julika, 2021. "A conceptual framework for understanding rebound effects with renewable electricity: A new challenge for decarbonizing the electricity sector," Renewable Energy, Elsevier, vol. 176(C), pages 423-432.
    4. Davis, Lucas W. & Martinez, Sebastian & Taboada, Bibiana, 2020. "How effective is energy-efficient housing? Evidence from a field trial in Mexico," Journal of Development Economics, Elsevier, vol. 143(C).
    5. Hancevic, Pedro I. & Sandoval, Hector H., 2022. "Low-income energy efficiency programs and energy consumption," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    6. Ross C. Beppler & Daniel C. Matisoff & Matthew E. Oliver, 2023. "Electricity consumption changes following solar adoption: Testing for a solar rebound," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 58-81, January.
    7. Davis, Lucas & Martinez, Sebastian & Taboada, Bibiana, 2018. "How Effective is Energy-efficient Housing?: Evidence From a Field Experiment in Mexico," IDB Publications (Working Papers) 8767, Inter-American Development Bank.
    8. 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.
    9. Lang, Ghislaine & Lanz, Bruno, 2022. "Climate policy without a price signal: Evidence on the implicit carbon price of energy efficiency in buildings," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    10. 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.
    11. 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).
    12. Minoru Morita & Kazuyuki Iwata & Toshi H. Arimura, 2022. "The rebound effect in air conditioner usage: an empirical analysis of Japanese individuals’ behaviors," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(1), pages 99-117, January.
    13. Ensieh Shojaeddini & Ben Gilbert, 2023. "Heterogeneity in the Rebound Effect: Evidence from Efficient Lighting Subsidies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 173-217, January.
    14. Benjamin Volland, 2016. "Efficiency in Domestic Space Heating: An Estimation of the Direct Rebound Effect for Domestic Heating in the U.S," IRENE Working Papers 16-01, IRENE Institute of Economic Research.
    15. Freire González, Jaume, 2010. "Empirical evidence of direct rebound effect in Catalonia," Energy Policy, Elsevier, vol. 38(5), pages 2309-2314, May.
    16. Miriam Berretta & Joshua Furgeson & Yue (Nicole) Wu & Collins Zamawe & Ian Hamilton & John Eyers, 2021. "Residential energy efficiency interventions: A meta‐analysis of effectiveness studies," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.
    17. Stela Rubínová, 2011. "Reakce poptávky domácností po energii na zvyšování energetické účinnosti: teorie a její důsledky pro konstrukci empiricky ověřitelných modelů [Reaction of Household Energy Demand to Improvements in," Politická ekonomie, Prague University of Economics and Business, vol. 2011(3), pages 359-378.
    18. Liu, Diyi & Zou, Hongyang & Qiu, Yueming & Du, Huibin, 2024. "Consumer reaction to green subsidy phase-out in China: Evidence from the household photovoltaic industry," Energy Economics, Elsevier, vol. 129(C).
    19. 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.
    20. Dimitropoulos, Alexandros & Oueslati, Walid & Sintek, Christina, 2018. "The rebound effect in road transport: A meta-analysis of empirical studies," Energy Economics, Elsevier, vol. 75(C), pages 163-179.

    More about this item

    Keywords

    Rebound effect; Solar panels; Electricity consumption; Renewable energy;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

    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:eee:eneeco:v:120:y:2023:i:c:s0140988323001433. 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/locate/eneco .

    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.