Document Type

Article

Abstract

Widespread implementation of energy efficiency is a key greenhouse gas emissions mitigation measure, but rebound can “take back” energy savings. However, the absence of solid analytical foundations hinders empirical determination of the size of rebound. A new clarity is needed, one that involves both economics and energy analysis. In this paper (Part I), we advance foundations of a rigorous analytical framework for consumer-sided rebound that starts at the microeconomic level and is approachable for both energy analysts and economists. We develop foundations of a framework that (i) clarifies the energy, expenditure, and consumption aspects of rebound, (ii) combines embodied energy with operations, maintenance, and disposal effects (under a new “emplacement effect”), and (iii) provides the first operationalized link between microeconomic and macroeconomic levels. The framework enables determination of the effects of non-marginal energy service price decreases, satiated demand for the energy service, and reduced economy-wide energy demand.

DOI

https://doi.org/10.1177/01956574251331969

Publication Date

7-7-2025

Included in

Economics Commons

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