When Efficiency Backfires or Helps: Understanding Rebound Effects Across Household Groups

• In Event: The Role of Policy Design and Implementation in Shaping Energy Program Performance

Abstract

The importance of energy conservation and efficiency is often discussed in the context of carbon emissions and climate change, especially when energy mixes prominently feature fossil fuels. At the household level, however, energy efficiency has direct implications for energy poverty. All else equal, greater efficiency decreases energy use and thus energy bills, alleviating burdens on struggling households. Yet, improved efficiency also lowers the cost of using appliances, potentially encouraging higher energy use—a phenomenon known as the rebound effect. This rebound is not necessarily undesirable for the energy poverty households, whose prior energy-limiting behaviors often reflect unmet needs. For instance, setting air conditioning to uncomfortably high temperatures can be deleterious towards one’s health. In contrast, rebound effects among wealthier households may reflect excessive or wasteful consumption with negative environmental externalities. In this paper, we investigate whether and how energy consumption and energy use behaviors change for households after acquiring energy-efficient appliances through a Tallahassee rebate program compared to those who did not participate. We further analyze how these changes differ among vulnerable subgroups, including low-income, minority, and elderly households. Granular 30-minute smart meter data enables us to characterize how energy consumption and use behaviors shift in the two years before and after program participation. Our findings suggest that although overall energy consumption slightly increases, there are large differences in how vulnerable subgroups respond to more efficient appliances, with implications for better program design and policy targeting.

Authors

• Xue Gao, Florida State University
  Presenting Author

• Daniel Han, Florida State University
  Presenting Author

• Destenie Nock, Carnegie Mellon University
  Non-Presenting Co-Author