CERE Working Papers, CERE - the Center for Environmental and Resource Economics
The economy-wide rebound effect from improved energy efficiency in Swedish industries – A general equilibrium analysis
(), Charlotte Berg and Eva Samakovlis
Abstract: The objective of this paper is to analyze the rebound
effect from increased efficiency in industrial use of energy in Sweden.
Energy efficiency improvements can have sig-nificant micro- and
macroeconomic effects that hampers the positive effect on real energy
savings. To assess the size of the overall rebound effect in the Swedish
econo-my we apply a computable general equilibrium model. The results show
that the economy-wide rebound effect in Sweden depends on a number of
factors, e.g. the extent of the energy efficiency improvement, how the
labour market is modeled as well as if the increase in energy efficiency is
combined with a cost or not. We find that the rebound effect following a 5
percent increase of energy efficiency in the Swedish industry lies in the
range of 40-70 percent. When energy efficiency only is improved in
energy-intensive production, the rebound effect becomes even higher. These
findings are in line with the results in the literature.
Keywords: rebound effect; energy efficiency; energy use; industry; computable general equilibrium; (follow links to similar papers)
JEL-Codes: C68; D24; D58; Q43; Q55; Q58; (follow links to similar papers)
24 pages, September 9, 2014
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