The Microeconomic Theory of the Rebound Effect and Its Welfare Implications

@article{Chan2015TheMT,
  title={The Microeconomic Theory of the Rebound Effect and Its Welfare Implications},
  author={Nathan W. Chan and Kenneth T. Gillingham},
  journal={Journal of the Association of Environmental and Resource Economists},
  year={2015},
  volume={2},
  pages={133 - 159}
}
Economists have long noted that improving energy efficiency could lead to a rebound effect, reducing or possibly even eliminating the energy savings from the efficiency improvement. This paper develops a generalized model to highlight features of the theory of the microeconomic rebound effect that are particularly relevant to empirical economists. We demonstrate when common elasticity identities used for empirical estimation are biased and how gross complement and substitute relationships… 
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References

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The rebound effect: Microeconomic definitions, limitations and extensions
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What do we know about the size of the rebound effect, the well-known phenomenon that improving energy efficiency may save less energy than expected due to a rebound of energy use? Is there any…
A Microeconomic Framework for Evaluating Energy Efficiency Rebound and Some Implications
Improving the efficiency with which we use energy is often said to be the most cost-effective way to reduce energy use and greenhouse gas emissions. Yet, such improvements usually lower the cost of…
Empirical estimates of the direct rebound effect: A review
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Despite several decades of government policies to promote energy efficiency, estimates of the costs and benefits of such policies remain controversial. At the heart of the controversy is whether…
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Technological progress and sustainable development: what about the rebound effect?
Re-Identifying the Rebound – What About Asymmetry?
Rebound effects measure the behaviorally induced offset in the reduction of energy consumption following efficiency improvements. Using panel estimation methods and household travel diary data…
Re-Identifying the Rebound: What About Asymmetry?
Rebound effects measure the behaviorally induced offset in the reduction of energy consumption following efficiency improvements. Using panel estimation methods and household travel diary data…
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