Modeling the rebound effect in two manufacturing industries

Karolina Safarzynska

Publication: Scientific journalJournal articleResearchpeer-review

22 Citations (Scopus)


The rebound effect refers to the phenomenon that energy savings from improvements in energy efficiency are lower than expected due to unintended second-order effects. Grasping specific mechanisms related to the rebound effect requires a good understanding of interactions between heterogonous agents on multiple markets. Otherwise, policies aimed at reducing energy use may render counter-expected and unforeseen consequences. In this paper, we propose a formal model, where technological change results from interactions on two markets: between consumers and producers in the market for final goods, and heterogeneous power plants in the electricity market. The analysis provides insights to the role of technological change, supply-demand coevolution, and status-driven consumption in explaining the rebound effect. The model is employed to compare effectiveness of economic policies aimed at reducing carbon emissions associated with production of consumer goods, namely: a tax on electricity and "nuclear obligations" to produce ten percent of electricity from nuclear energy. (author's abstract)
Original languageEnglish
Pages (from-to)1135-1154
JournalTechnological Forecasting and Social Change
Issue number6
Publication statusPublished - 1 Jul 2012

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