Residential and Industrial Energy Efficiency Improvement: A Dynamic General Equilibrium Analysis of the Rebound Effect
| Autor: | Xavier Pautrel, Sondès Kahouli |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
050208 finance Q43 Energy Efficiency Industrial Energy Consumption 020209 energy 05 social sciences Transitional Dynamics Residential Energy Consumption 02 engineering and technology General Energy Rebound Effect 8. Economic growth 0502 economics and business 0202 electrical engineering electronic engineering information engineering ddc:330 D58 050207 economics |
| Zdroj: | SSRN Electronic Journal. FEEM Working Paper (1556-5068) (Elsevier BV), 2020-12, N. 28, P. 32p. |
| Popis: | The aim of this paper is to investigate bi-directional spillovers into residential and industrial sectors induced by energy efficiency improvement (EEI) in both the short- and long-term, and the impact of nesting structure as well as the size of elasticities of substitution of production and utility functions on the magnitude and the transitional dynamic of rebound effect. Developing a dynamic general equilibrium model, we demonstrate that residential EEIs spillovers into the industrial sector through the labor supply channel and industrial EEIs spill-overs into the residential sector through the conventional income channel. Numerical simulations calibrated on the U.S. suggest that not taking into account these spillover effects could lead to mis-estimate the rebound effect especially of residential sector EEIs. We also demonstrate how the size and the duration of the rebound effect depend on the value of elasticities of substitution. Especially, the elasticity of substitution between energy and non-energy consumption in household utility and the elasticity of substitution between physical capital and labor in production play a major role. Numerical simulations suggest that alternative sets of value for the elasticities of substitution may give sizable different patterns of rebound effects in both the short- and long-term. In policy terms, our results suggest that energy efficiency policies should be implemented simultaneously with rebound effect offsetting policies by considering short- and long-term wide-economy feedbacks. As a consequence, they recall for considering debates about what type of policy pathways is more effective in mitigating the rebound effect. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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