IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v30y2014icp124-132.html
   My bibliography  Save this article

Direct rebound effect on urban residential electricity use: An empirical study in China

Author

Listed:
  • Wang, Zhaohua
  • Lu, Milin
  • Wang, Jian-Cai

Abstract

Though improving energy efficiency is an important approach to decrease the energy consumption, the rebound effect caused by technology progress negatively affects the effectiveness of energy efficiency policies. This paper empirically investigates direct rebound effect of urban residential electricity use in China. Using China's 30 provincial government panel data from1996 to 2010, we build a co-integration equation and a panel error correction model to analyze the direct rebound effect. The results indicate that an obvious rebound effect in the Chinese urban residential electricity consumption does exist. Specifically, the long-term rebound effect is 0.74, while the short-term rebound effect is 0.72. Therefore, the rebound effect significantly impairs functions of energy efficiency policies. For this reason, Chinese government should take the rebound effect into consideration when formulating energy policies.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:rensus:v:30:y:2014:i:c:p:124-132
    DOI: 10.1016/j.rser.2013.09.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032113006588
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2013.09.002?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. Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
    2. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    3. Bilgili, Faik & Pamuk, Yalçın & Halıcı Tülüce, Nadide Sevil, 2010. "Short run and long run dynamics of residential electricity consumption: Homogeneous and heterogeneous panel estimations for OECD," MPRA Paper 33291, University Library of Munich, Germany, revised Jun 2011.
    4. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    5. Wang, Zhaohua & Zhang, Bin & Zhang, Yixiang, 2012. "Determinants of public acceptance of tiered electricity price reform in China: Evidence from four urban cities," Applied Energy, Elsevier, vol. 91(1), pages 235-244.
    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.
    7. Saunders Harry D, 2005. "A Calculator for Energy Consumption Changes Arising from New Technologies," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-35, September.
    8. Sailor, David J, 2001. "Relating residential and commercial sector electricity loads to climate—evaluating state level sensitivities and vulnerabilities," Energy, Elsevier, vol. 26(7), pages 645-657.
    9. Manuel Frondel & Jorg Peters & Colin Vance, 2008. "Identifying the Rebound: Evidence from a German Household Panel," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 145-164.
    10. Saunders, Harry D., 2008. "Fuel conserving (and using) production functions," Energy Economics, Elsevier, vol. 30(5), pages 2184-2235, September.
    11. Haas, Reinhard & Schipper, Lee, 1998. "Residential energy demand in OECD-countries and the role of irreversible efficiency improvements," Energy Economics, Elsevier, vol. 20(4), pages 421-442, September.
    12. Brandt, Loren & Holz, Carsten A, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 43-86, October.
    13. Brookes, L. G., 1978. "Energy policy, the energy price fallacy and the role of nuclear energy in the UK," Energy Policy, Elsevier, vol. 6(2), pages 94-106, June.
    14. Patterson, Murray G, 1996. "What is energy efficiency? : Concepts, indicators and methodological issues," Energy Policy, Elsevier, vol. 24(5), pages 377-390, May.
    15. Harty D. Saunders, 1992. "The Khazzoom-Brookes Postulate and Neoclassical Growth," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 131-148.
    16. 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.
    17. Bosseboeuf, Didier & Chateau, Bertrand & Lapillonne, Bruno, 1997. "Cross-country comparison on energy efficiency indicators: the on-going European effort towards a common methodology," Energy Policy, Elsevier, vol. 25(7-9), pages 673-682.
    18. Brandt, Loren & Holz, Carsten A, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 43-86, October.
    19. Bentzen, Jan, 2004. "Estimating the rebound effect in US manufacturing energy consumption," Energy Economics, Elsevier, vol. 26(1), pages 123-134, January.
    20. 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.
    21. Mizobuchi, Kenichi, 2008. "An empirical study on the rebound effect considering capital costs," Energy Economics, Elsevier, vol. 30(5), pages 2486-2516, September.
    22. Binswanger, Mathias, 2001. "Technological progress and sustainable development: what about the rebound effect?," Ecological Economics, Elsevier, vol. 36(1), pages 119-132, January.
    23. Haas, Reinhard & Biermayr, Peter, 2000. "The rebound effect for space heating Empirical evidence from Austria," Energy Policy, Elsevier, vol. 28(6-7), pages 403-410, June.
    24. Saunders, Harry D., 2000. "Does predicted rebound depend on distinguishing between energy and energy services?," Energy Policy, Elsevier, vol. 28(6-7), pages 497-500, June.
    25. J. Daniel Khazzoom, 1980. "Economic Implications of Mandated Efficiency in Standards for Household Appliances," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 21-40.
    26. Dermot Gately, 1993. "The Imperfect Price-Reversibility of World Oil Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 163-182.
    27. 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.
    28. 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.
    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. Milin Lu & Zhaohua Wang, 2017. "Rebound effects for residential electricity use in urban China: an aggregation analysis based E-I-O and scenario simulation," Annals of Operations Research, Springer, vol. 255(1), pages 525-546, August.
    2. 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.
    3. Karen Turner, 2013. ""Rebound" Effects from Increased Energy Efficiency: A Time to Pause and Reflect," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    4. Wang, H. & Zhou, P. & Zhou, D.Q., 2012. "An empirical study of direct rebound effect for passenger transport in urban China," Energy Economics, Elsevier, vol. 34(2), pages 452-460.
    5. Toroghi, Shahaboddin H. & Oliver, Matthew E., 2019. "Framework for estimation of the direct rebound effect for residential photovoltaic systems," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    6. Wang, Zhaohua & Lu, Milin, 2014. "An empirical study of direct rebound effect for road freight transport in China," Applied Energy, Elsevier, vol. 133(C), pages 274-281.
    7. Lin, Boqiang & Liu, Xia, 2013. "Reform of refined oil product pricing mechanism and energy rebound effect for passenger transportation in China," Energy Policy, Elsevier, vol. 57(C), pages 329-337.
    8. 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.
    9. Orea, Luis & Llorca, Manuel & Filippini, Massimo, 2014. "Measuring energy efficiency and rebound effects using a stochastic demand frontier approach: the US residential energy demand," Efficiency Series Papers 2014/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    10. Zhang, Jiangshan & Lin Lawell, C.-Y. Cynthia, 2017. "The macroeconomic rebound effect in China," Energy Economics, Elsevier, vol. 67(C), pages 202-212.
    11. Rabindra Nepal & Muhammad Indra al Irsyad & Tooraj Jamasb, 2021. "Sectoral Electricity Demand and Direct Rebound Effects inNew Zealand," The Energy Journal, , vol. 42(4), pages 153-174, July.
    12. Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
    13. Lin, Boqiang & Chen, Yufang & Zhang, Guoliang, 2017. "Technological progress and rebound effect in China's nonferrous metals industry: An empirical study," Energy Policy, Elsevier, vol. 109(C), pages 520-529.
    14. Freire-González, Jaume, 2011. "Methods to empirically estimate direct and indirect rebound effect of energy-saving technological changes in households," Ecological Modelling, Elsevier, vol. 223(1), pages 32-40.
    15. 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.
    16. Lin, Boqiang & Yang, Fang & Liu, Xia, 2013. "A study of the rebound effect on China's current energy conservation and emissions reduction: Measures and policy choices," Energy, Elsevier, vol. 58(C), pages 330-339.
    17. 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.
    18. Freire-González, Jaume & Font Vivanco, David & Puig-Ventosa, Ignasi, 2017. "Economic structure and energy savings from energy efficiency in households," Ecological Economics, Elsevier, vol. 131(C), pages 12-20.
    19. Guerra, Ana-Isabel & Sancho, Ferran, 2010. "Rethinking economy-wide rebound measures: An unbiased proposal," Energy Policy, Elsevier, vol. 38(11), pages 6684-6694, November.
    20. 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.

    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:rensus:v:30:y:2014:i:c:p:124-132. 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/600126/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.