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Identifying the Rebound: Theoretical Issues and Empirical Evidence from a German Household Panel

Author

Listed:
  • Frondel, Manuel
  • Peters, Jörg
  • Vance, Colin

Abstract

Using a panel of household travel diary data collected in Germany between 1997 and 2005, this study assesses the effectiveness of fuel efficiency improvements by econometrically estimating the rebound effect, describing the extent to which higher efficiency causes additional travel.Following a theoretical discussion outlining three alternative definitions of the rebound effect, the econometric analysis generates corresponding estimates using panel methods to control for the effects of unobservables that could otherwise produce spurious results. Our results, which range between 56% and 66%, indicate a rebound that is substantially larger than obtained in other studies, calling into question the efficacy of recently implemented measures in the European Union targeted at technological innovations in the automotive sector.

Suggested Citation

  • Frondel, Manuel & Peters, Jörg & Vance, Colin, 2007. "Identifying the Rebound: Theoretical Issues and Empirical Evidence from a German Household Panel," RWI Discussion Papers 57, RWI - Leibniz-Institut für Wirtschaftsforschung.
    • Handle: RePEc:zbw:rwidps:57
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. Matiaske, Wenzel & Menges, Roland & Spiess, Martin, 2012. "Modifying the rebound: It depends! Explaining mobility behavior on the basis of the German socio-economic panel," Energy Policy, Elsevier, vol. 41(C), pages 29-35.
    4. Bertoldi, Paolo & Rezessy, Silvia & Anable, Jillian & Jochem, Patrick & Oikonomou, Vlasis, 2011. "Energy Saving Obligations and White Certificates: Ideas and Considerations for the Transport Sector," MPRA Paper 91624, University Library of Munich, Germany.
    5. Angela Köppl & Michael Wüger, 2007. "Determinanten der Energienachfrage der privaten Haushalte unter Berücksichtigung von Lebensstilen," WIFO Studies, WIFO, number 29999.
    6. Stapleton, Lee & Sorrell, Steve & Schwanen, Tim, 2016. "Estimating direct rebound effects for personal automotive travel in Great Britain," Energy Economics, Elsevier, vol. 54(C), pages 313-325.
    7. Madlener, Reinhard & Hauertmann, Maximilian, 2011. "Rebound Effects in German Residential Heating: Do Ownership and Income Matter?," FCN Working Papers 2/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    8. 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.
    9. Abrell, Jan & Beestermöller, Robert, 2012. "Macroeconomic Assessment of Vehicle Carbon Policies Using a Transport-CGE-Model for Germany," Conference papers 332275, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Heinrichs, Heidi & Jochem, Patrick & Fichtner, Wolf, 2014. "Including road transport in the EU ETS (European Emissions Trading System): A model-based analysis of the German electricity and transport sector," Energy, Elsevier, vol. 69(C), pages 708-720.

    More about this item

    Keywords

    Household production; rebound effect; panel models;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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