Heterogeneous Rebound Effects: Comparing Estimates from Discrete-Continuous Models

27 Pages Posted: 25 Nov 2016

See all articles by Manuel Frondel

Manuel Frondel

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

Fernanda Martínez Flores

RWI – Leibniz Institute for Economic Research; Ruhr University of Bochum

Colin Vance

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

Multiple version iconThere are 2 versions of this paper

Date Written: November 2, 2016

Abstract

Drawing on household data collected in Germany between 1997 and 2012, this article investigates the heterogeneity in the direct rebound effect of individual mobility using discrete-continuous models, a common technique for addressing selectivity biases in data sets with endogenously partitioned observational units. After deriving formulae for the marginal effects obtained from these selection correction approaches, we estimate a joint model of automobile ownership and distance driven to quantify the rebound effect, the behaviorally induced increase in driving that results from higher fuel economy. Our findings suggest that between 30% to 80% of the emissions reduction from an efficiency improvement is lost to increased driving. The relatively large magnitude of even the lower bound of this range indicates that estimates of the climate impacts from technological change should take the rebound effect into account.

Keywords: Discrete-continuous models; Marginal effects; Car use

JEL Classification: D12, Q21, Q41

Suggested Citation

Frondel, Manuel and Martínez Flores, Fernanda and Vance, Colin, Heterogeneous Rebound Effects: Comparing Estimates from Discrete-Continuous Models (November 2, 2016). USAEE Working Paper No. 16-285. Available at SSRN: https://ssrn.com/abstract=2874901 or http://dx.doi.org/10.2139/ssrn.2874901

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

Fernanda Martínez Flores

RWI – Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Ruhr University of Bochum ( email )

Faculty of Management and Economics
Chair of International Economics
Bochum, 44780
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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