Rebound effect (conservation)

In conservation and energy economics, the rebound effect (or take-back effect) is the reduction in expected gains from new technologies that increase the efficiency of resource use, because of behavioral or other systemic responses. These responses diminish the beneficial effects of the new technology or other measures taken. A definition of the rebound effect is provided by Thiesen et al. (2008) as, “the rebound effect deals with the fact that improvements in efficiency often lead to cost reductions that provide the possibility to buy more of the improved product or other products or services.” A classic example from this perspective is a driver who substitutes a vehicle with a fuel-efficient version, only to reap the benefits of its lower operating expenses to commute longer and more frequently." While the literature on the rebound effect generally focuses on the effect of technological improvements on energy consumption, the theory can also be applied to the use of any natural resource or other input, such as labor. The rebound effect is generally expressed as a ratio of the lost benefit compared to the expected environmental benefit when holding consumption constant. For instance, if a 5% improvement in vehicle fuel efficiency results in only a 2% drop in fuel use, there is a 60% rebound effect (since = 60%). The 'missing' 3% might have been consumed by driving faster or further than before. The existence of the rebound effect is uncontroversial. However, debate continues as to the magnitude and impact of the effect in real world situations. Depending on the magnitude of the rebound effect, there are five different rebound effect (RE) types: Super conservation (RE < 0): the actual resource savings are higher than expected savings – the rebound effect is negative. Zero rebound (RE = 0): The actual resource savings are equal to expected savings – the rebound effect is zero. Partial rebound (0 < RE < 1): The actual resource savings are less than expected savings – the rebound effect is between 0% and 100%.

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