Beyond National Economy-Wide Rebound Effects. An Applied General Equilibrium Analysis Incorporating International Spillover Effects

34 Pages Posted: 17 Apr 2014

See all articles by Simon Koesler

Simon Koesler

ZEW – Leibniz Centre for European Economic Research - Environmental and Resource Economics, Environmental Management Research

J. Kim Swales

University of Strathclyde, Glasgow - Strathclyde Business School - Department of Economics

Karen Turner

Heriot-Watt University

Date Written: February 20, 2014

Abstract

This paper proposes that the national focus of energy ‘rebound’ studies should be extended to an international context in the presence of supra-national agreements such as EU 20-20-20. The potential for energy efficiency improvements in one nation to impact energy use in others means that national targets and actions cannot be considered independently. This paper develops a general equilibrium analysis of increased efficiency in productive energy use, identifying a range of channels through which spillover effects may be transmitted as a result of trade in goods and services. The results show that energy efficiency in one nation does impact energy use in others. However, the sectoral and spatial distribution of positive and negative effects depends on the nature of the efficiency improvement and factor supply conditions. In particular, changes in relative competitiveness and energy supply conditions act to dampen economy-wide rebound as the boundaries of the economy are expanded.

Keywords: energy supply; energy demand; rebound effects; energy efficiency; general equilibrium; trade spillover

JEL Classification: D58; Q41; Q43; F18; Q56

Suggested Citation

Koesler, Simon and Swales, J. Kim and Turner, Karen, Beyond National Economy-Wide Rebound Effects. An Applied General Equilibrium Analysis Incorporating International Spillover Effects (February 20, 2014). ZEW - Centre for European Economic Research Discussion Paper No. 14-025, Available at SSRN: https://ssrn.com/abstract=2426074 or http://dx.doi.org/10.2139/ssrn.2426074

Simon Koesler (Contact Author)

ZEW – Leibniz Centre for European Economic Research - Environmental and Resource Economics, Environmental Management Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim
Germany

J. Kim Swales

University of Strathclyde, Glasgow - Strathclyde Business School - Department of Economics ( email )

100 Cathedral Street
Glasgow G4 0LN
United Kingdom
0 +141 548 3966 (Phone)
0 +141 552 8347 (Fax)

Karen Turner

Heriot-Watt University ( email )

Riccarton
Edinburgh, Scotland EH14 4AS
United Kingdom

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