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Closing the Efficiency Gap: Insights into curbing the direct rebound effect of residential electricity consumption in Saudi Arabia

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  • Belaïd, Fateh
  • Mikayilov, Jeyhun I.

Abstract

The rebound effect refers to the phenomenon where energy efficiency improvements lead to increased energy consumption, offsetting some of the expected energy savings. This article aims to estimate the direct rebound effect of residential electricity consumption in Saudi Arabia and explores potential solutions to mitigate its impact. Understanding the magnitude of the rebound effect is crucial for policymakers to develop effective energy conservation strategies. This study employs a time-series modeling approach, using a dataset covering 31 years, 1990–2021, and four regions within Saudi Arabia, incorporating various socioeconomic and energy-related variables. The magnitude of the rebound effect in residential electricity consumption in the Kingdom, which varies across regions, ranges from 41% to 71%. Since the inception of the first wave of the energy price reform in 2016, the Kingdom has witnessed a power consumption rebound in the residential sector totaling 39.02 TWh (6.5 Twh per annum), and a total of 28.13 Mt. in CO2 equivalent emissions (4.69 Mt. in CO2 equivalent per annum) during the period of 2016–2021. These findings add to the existing literature on the rebound effect, further enriching our understanding of this complex phenomenon and its implications. They also provide valuable insights for policymakers and energy planners in Saudi Arabia, helping them develop effective strategies to minimize the rebound effect and promote energy conservation.

Suggested Citation

  • Belaïd, Fateh & Mikayilov, Jeyhun I., 2024. "Closing the Efficiency Gap: Insights into curbing the direct rebound effect of residential electricity consumption in Saudi Arabia," Energy Economics, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:eneeco:v:135:y:2024:i:c:s0140988324003554
    DOI: 10.1016/j.eneco.2024.107647
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