Estimating the direct rebound effect in the residential energy sector: An application in Spain

Abstract

This chapter estimates the direct rebound effect in residential heating and domestic hot water services in Spain in 2012. The fuels analysed are electricity and natural gas. Contrary to previous research, the direct rebound effect is calculated using, among others, data on unit variable cost of energy, the amount of energy consumed per annum and residential CO2 emissions. The direct rebound effects estimated are found to be relatively high, so an increase in energy efficiency can be expected to produce only a slight decrease in consumption. On the other hand, it is found that a decrease in residential CO2 emissions may result in a drop in residential energy consumption, with natural gas as the most sensitive fuel.