Heterogeneity in the Rebound Effect: Further Evidence for Germany

26 Pages Posted: 27 Nov 2010  

Manuel Frondel

RWI Leibniz Institute for Economic Research ; Ruhr University Bochum (RUB)

Nolan Ritter

Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Colin Vance

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

Date Written: November 27, 2010

Abstract

Rebound effects measure the behaviorally induced offset in the reduction of energy consumption following efficiency improvements. Using both panel estimation and quantile-regression methods on household travel diary data collected in Germany between 1997 and 2009, this study investigates the heterogeneity of the rebound effect in private transport. With the average rebound effect being in the range of 57% to 62%, our results are in line with a recent German study by Frondel, Peterss, and Vance (2008), but are substantially larger than those obtained from other studies. Furthermore, our quantile-regression results indicate that the magnitude of estimated fuel price elasticities – from which rebound effects can be derived – depends inversely on the household’s driving intensity: Households with low vehicle mileage exhibit fuel price elasticities, and hence rebound effects, that are significantly larger than those for households with high vehicle mileage.

Keywords: Automobile Travel, Panel Models, Quantile Regression

JEL Classification: D13, D41

Suggested Citation

Frondel, Manuel and Ritter, Nolan and Vance, Colin, Heterogeneity in the Rebound Effect: Further Evidence for Germany (November 27, 2010). USAEE-IAEE Working Paper No. 10-059. Available at SSRN: https://ssrn.com/abstract=1715904 or http://dx.doi.org/10.2139/ssrn.1715904

Manuel Frondel (Contact Author)

RWI Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
45128 Essen
Germany

Ruhr University Bochum (RUB) ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

Nolan Ritter

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Colin Vance

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany
0049-201-8149-237 (Phone)

HOME PAGE: http://www.rwi-essen.de

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