Time-Saving Innovations and Their Impact on Energy Use: Some Lessons from a Household-Production-Function Approach

University of Applied Sciences of Northwestern Switzerland Discussion Paper No. 2002-W01

24 Pages Posted: 28 Oct 2003

See all articles by Mathias Binswanger

Mathias Binswanger

University of Applied Sciences Northwestern Switzerland (CH) - Department of Economics

Date Written: April 2002

Abstract

This paper highlights a specific aspect of time allocation within households: the impact of timesaving technological progress on time use as well as on energy use for non-work activities. It shows that, under standard assumptions, time-saving technological progress causes a feedback on time use (a rebound effect). If the feedback is strong, households may not "save" any time at all although they constantly invest in time-saving devices. Moreover, innovations of a timesaving nature tend to have a substantial impact on energy consumption. When the opportunity costs of time (the wage rate) are high and energy prices are low, time-saving innovations are also likely to increase energy consumption.

Keywords: household production, allocation of time, time-saving innovations, rebound effect,energy use

JEL Classification: D13, Q41

Suggested Citation

Binswanger, Mathias, Time-Saving Innovations and Their Impact on Energy Use: Some Lessons from a Household-Production-Function Approach (April 2002). University of Applied Sciences of Northwestern Switzerland Discussion Paper No. 2002-W01. Available at SSRN: https://ssrn.com/abstract=449780 or http://dx.doi.org/10.2139/ssrn.449780

Mathias Binswanger (Contact Author)

University of Applied Sciences Northwestern Switzerland (CH) - Department of Economics ( email )

Riggenbachstrasse 16
Olten, Solothurn 4600
Switzerland
00622877837 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
261
rank
109,278
Abstract Views
2,126
PlumX