Policy Research

Energy efficiency and consumption — the rebound effect — a survey

Summary

This article argues that when energy consumption becomes more efficient due to improved technology, it will reduce the per-unit price of energy. This will in turn, raise the consumption of energy services, offsetting the efficiency. However, the conclusions of the study where inconclusive and the micro level of this study, and not much research has been done on the macro implications of this argument.

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Policy Implications

I think that it is still worth it to continue to strive for more technological advances that would allow for more efficient energy use, however it is important to bear in mind the behavioral side of energy use. If people can you less energy to do something, there is a chance that they will do more of it, leading to a bounce-back to the original energy use.