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Rebound Effects for Household Energy Services in the UK

Mona Chitnis, Roger Fouquet, and Steve Sorrell

Year: 2020
Volume: Volume 41
Number: Number 4
DOI: 10.5547/01956574.41.4.mchi
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Abstract:
This study estimates the combined direct and indirect rebound effects from energy efficiency improvements in the delivery of six energy services to UK households, namely: heating; lighting; cooking; refrigeration and clothes washing; entertainment and computing; and private vehicle travel. We use a unique database on the price and quantity demanded of these energy services over the past half century. We estimate a two-stage almost ideal demand system for household expenditure, using these energy services as expenditure categories. We estimate rebound effects in terms of carbon emissions and only include the �direct� emissions associated with energy consumption. Our results suggest direct rebound effects of 70% for heating, 54% for private vehicle travel and ~90% for the other energy services. However, these effects are offset by negative indirect rebound effects�that is, indirect rebounds contribute additional emission savings. As a result, our estimates of combined rebound effects are generally smaller, namely 54% for lighting, 55% for heating, 41% for refrigeration and clothes washing, �12% for entertainment and computing, 44% for cooking and 69% for vehicle travel. We also find some evidence that rebound effects have declined over time. We provide some important caveats to these results, and indicate priorities for future research.



Transient and Persistent Energy Efficiency in the Wastewater Sector based on Economic Foundations

Stefano Longo, Mona Chitnis, Miguel Mauricio-Iglesias, Almudena Hospido

Year: 2020
Volume: Volume 41
Number: Number 6
DOI: 10.5547/01956574.41.6.slon
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Abstract:
Given the increasing importance of the wastewater sector in terms of energy usage, the understanding of the level of energy efficiency of wastewater treatment plants (WWTPs) is useful to both the industry itself as well as policy makers. Here, based on economic foundations, we apply a Stochastic Frontier Analysis (SFA) approach for energy demand modelling to estimate energy efficiency in the wastewater sector. Using specific SFA models and panel data from 183 Swiss WWTPs over the period 2001 to 2015, the paper illustrates that distinguishing between persistent and transient inefficiency is essential to deduce appropriate energy efficiency diagnosis in WWTPs. In this respect, persistent energy inefficiency is found to be more severe than transient energy inefficiency. Furthermore, it is shown that the age of the equipment influences the demand for energy and the energy savings due to technological innovation are quantified. Finally, economies of output density and scale are estimated demonstrating that for plants operating below optimal scale significant energy savings can be achieved if plants would be operated at higher size. Moreover, our analysis reveals also that for plants larger than 100,000 Population Equivalent, at least from an energy efficiency point of view, it would be no more beneficial to increase their scale.





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