Heterogeneous direct rebound effect: Theory and evidence from the Energy Star program

Improvements in energy efficiency change the relative prices of energy services and thus the consumption of those services. This so-called direct rebound effect changes the energy savings that improved efficiency might otherwise achieve. This paper develops a theoretical model that shows the sign of the direct rebound effect depends on the type of energy service. Empirical evidence from the 2009 Residential Energy Consumption Survey data shows a negative direct rebound effect for Energy Star dishwashers and a potentially positive direct rebound effect for Energy Star air conditioners. Negative rebound effects amplify energy savings, while positive rebound effects offset energy savings from using more efficient technologies. (C) 2017 Elsevier B.V. All rights reserved.