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Energy efficiency—a critical view

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  • Herring, Horace

Abstract

This paper challenges the view that improving the efficiency of energy use will lead to a reduction in national energy consumption, and hence is an effective policy for reducing national CO2 emissions. It argues that improving energy efficiency lowers the implicit price of energy and hence make its use more affordable, thus leading to greater use—an effect termed the ‘rebound’ or ‘takeback’ effect. The paper presents the views of economists, as well as green critics of ‘the gospel of efficiency’. The paper argues that a more effective CO2 policy is to concentrate on shifting to non-fossil fuels, like renewables, subsidized through a carbon tax. Ultimately what is needed, to limit energy consumption, is energy sufficiency (or conservation) rather than energy efficiency.

Suggested Citation

  • Herring, Horace, 2006. "Energy efficiency—a critical view," Energy, Elsevier, vol. 31(1), pages 10-20.
    • Handle: RePEc:eee:energy:v:31:y:2006:i:1:p:10-20
    DOI: 10.1016/j.energy.2004.04.055
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    1. David L. Greene & James R. Kahn & Robert C. Gibson, 1999. "Fuel Economy Rebound Effect for U.S. Household Vehicles," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-31.
    2. Saunders, Harry D., 2000. "A view from the macro side: rebound, backfire, and Khazzoom-Brookes," Energy Policy, Elsevier, vol. 28(6-7), pages 439-449, June.
    3. Horace Herring, 1996. "Is Energy Efficiency Good For The Environment? Some Conflicts And Confusions," World Scientific Book Chapters, in: G MacKerron & P Pearson (ed.), The Uk Energy Experience A Model or A Warning?, chapter 24, pages 327-338, World Scientific Publishing Co. Pte. Ltd..
    4. Herring, Horace, 1999. "Does energy efficiency save energy? The debate and its consequences," Applied Energy, Elsevier, vol. 63(3), pages 209-226, July.
    5. Vaclav Smil, 2000. "Rocky Mountain Visions: A Review Essay," Population and Development Review, The Population Council, Inc., vol. 26(1), pages 163-187, March.
    6. 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.
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