Production-side effects and feedback loops between the micro and macro level

Abstract

Research on the rebound effect has so far mainly considered ‘micro-economic rebound effects’ at the level of consumers and households, as well as ‘macro-economic rebound effects’ in the sense of energy efficiency-induced economic growth. This chapter focuses on an area of rebound research that has not yet received sufficient attention, namely on ‘production-side rebound effects’, at the company level, as well as sector-level rebounds at the level of industry branches and markets. The chapter summarises and systematises reasons why companies generate rebounds, distinguishes market- and sector-level rebounds from macro-economic growth effects, identifies a number of ‘feedback loops’ by which production-side and sector-level rebounds multiply or nullify consumer-side rebound effects, and finally discusses some conclusions on the potential quantitative dimension of production-side rebound effects.