When Power Saving Harms the Climate

Sustainable Future Policy Lab: Analyses, 2020-003

3 Pages Posted: 3 Mar 2022

See all articles by Johannes Jarke-Neuert

Johannes Jarke-Neuert

University of Hamburg - Center for Earth System Research and Sustainability (CEN)

Grischa Perino

University of Hamburg

Date Written: September 3, 2020

Abstract

Governments around the globe embrace "energy efficiency" to address climate change. For example, the European Union’s "2030 Climate and Energy Framework" explicitly links the pledge to cut greenhouse gas emissions by 40% until 2030 (from 1990 levels) to the goal of a 32.5% improvement of energy efficiency by the same year (from 2007 levels). A 32.5% boost of energy efficiency is assumed to result in a 32.5% drop in energy consumption and carbon emissions. This reasoning is flawed.

Keywords: energy policy, climate policy, greenhouse gas emissions, cap-and-trade, energy efficiency, carbon leakage, rebound effect, backfire effect, general equilibrium

JEL Classification: D58, H23, K32, Q48, Q54, Q58

Suggested Citation

Jarke-Neuert, Johannes and Perino, Grischa, When Power Saving Harms the Climate (September 3, 2020). Sustainable Future Policy Lab: Analyses, 2020-003, Available at SSRN: https://ssrn.com/abstract=4000577 or http://dx.doi.org/10.2139/ssrn.4000577

Johannes Jarke-Neuert (Contact Author)

University of Hamburg - Center for Earth System Research and Sustainability (CEN) ( email )

Bundesstrasse 53
Hamburg, Hamburg 20146
Germany

Grischa Perino

University of Hamburg ( email )

Welckerstr. 8
Hamburg, 20354
Germany

HOME PAGE: http://sites.google.com/site/gperinosite/

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