|Feb. 22, 2004：Published
|Economy-wide Model of Rebound Effect for Environmental Efficiency|
(Toyohashi Sozo College)
|Full Paper (PDF)|
Rebound effects for environmental efficiency mean that improvements for the efficiency cause unintentional reactions and reduce the effects of those improvements. Many papers on rebound effects have been published in the research field of energy economics since 80's. Kazzoom(1980) stimulated researchers and generated many papers (e.g. Lovins 1988, Greeene 1992, 1999, Shipper 2000, Binswanger 2001, Jalas 2002, Hofstetter 2003). Empirical studies were also accumulated. The summary by Greening(2000) pointed out an interesting features that empirical works had been concentrated on the subjects for partial equilibrium, which means that they targeted one or a few goods or services. Greening(2000)'s summary picked up over 74 papers. However, only one paper (Kydes 1992) used economy-wide model for analysis of the rebound effects. Besides that, Although Saunders(1992) discussed about the rebound effects within the framework of the macroscopic neoclassical growth theory, there existed no prices and could not capture the economy-wide interrelations.
This paper presents the estimation of the rebound effects of Japanese economy with the applied general equilibrium model for the appraisal of environmental policies (hereinafter, we call it EPAM). EPAM disaggregate the economy into 33 industrial sectors inclusive of energy sectors (Coal products, Oil products, Electricity and Gas supply). EPAM can simulate the impact of the improvements of energy efficiencies on the total CO2 emission of Japanese economy. We will show the rebound effects depend upon the elasticity of substitution in industrial technology and in consumer's utility functions and the size of rebound effects are estimated 35% to 70%.
This paper will read in the International Workshop on Sustainable Consumption,
University of Leeds, March 5-6, 2004.