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Energy Efficiency and Rebound Effects: An Econometric Analysis of Energy Demand in the Commercial Building Sector

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  • Yueming Qiu

Abstract

It is widely recognized that the adoption of energy saving innovations can induce an increase in the usage of the corresponding technologies and thus can possibly increase energy consumption. Among other concerns is that uncertainties regarding the magnitude of this “rebound effect” can deter policy makers from promoting energy efficiency. This paper analyzes the rebound effects of the adoption of energy efficient technologies in commercial buildings. Based upon a structural model of technology adoption and subsequent energy demand at the building level, the empirical results are that energy efficiency can reduce electricity use by about 35 % and natural gas consumption by about 50 %. Copyright Springer Science+Business Media Dordrecht 2014

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  • Yueming Qiu, 2014. "Energy Efficiency and Rebound Effects: An Econometric Analysis of Energy Demand in the Commercial Building Sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(2), pages 295-335, October.
    • Handle: RePEc:kap:enreec:v:59:y:2014:i:2:p:295-335
    DOI: 10.1007/s10640-013-9729-9
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    8. Yueming (Lucy) Qiu & Xin Su & Yi David Wang, 2017. "Factors influencing commercial buildings to obtain green certificates," Applied Economics, Taylor & Francis Journals, vol. 49(20), pages 1937-1949, April.
    9. Lu, Mengxue & Lai, Joseph, 2020. "Review on carbon emissions of commercial buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    10. Li, Huan & Carrión-Flores, Carmen E., 2017. "An analysis of the ENERGY STAR® program in Alachua County, Florida," Ecological Economics, Elsevier, vol. 131(C), pages 98-108.
    11. Kahn, Matthew E. & Kok, Nils & Quigley, John M., 2014. "Carbon emissions from the commercial building sector: The role of climate, quality, and incentives," Journal of Public Economics, Elsevier, vol. 113(C), pages 1-12.
    12. 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.
    13. Ohler, Adrienne M. & Loomis, David G. & Ilves, Kadi, 2020. "A study of electricity savings from energy star appliances using household survey data," Energy Policy, Elsevier, vol. 144(C).
    14. Qiu, Yueming & Kahn, Matthew E., 2019. "Impact of voluntary green certification on building energy performance," Energy Economics, Elsevier, vol. 80(C), pages 461-475.
    15. Kempa, Karol & Haas, Christian, 2016. "Directed Technical Change and Energy Intensity Dynamics: Structural Change vs. Energy Efficiency," VfS Annual Conference 2016 (Augsburg): Demographic Change 145722, Verein für Socialpolitik / German Economic Association.
    16. Sun, Chuanwang & Xu, Zhehong & Zheng, Hongwei, 2023. "Green transformation of the building industry and the government policy effects: Policy simulation based on the DSGE model," Energy, Elsevier, vol. 268(C).
    17. Sun, Bixuan, 2018. "Heterogeneous direct rebound effect: Theory and evidence from the Energy Star program," Energy Economics, Elsevier, vol. 69(C), pages 335-349.

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