Energy efficiency improvements and energy demand: Is the rebound effect different in a multi-person household?
Alejandra Giraldo Hurtado  1, *@  
1 : Centre de recherche en économie et management  (CREM)  -  Website
Universite de Rennes 1 : UR1, Centre National de la Recherche Scientifique, CREM UMR CNRS 6211
7 place Hoche, BP 86514 -35065 RENNES CEDEX -  France
* : Corresponding author

Energy efficiency policies aim at reducing greenhouse gas emissions (GHG) by lowering the energy usage. However, the increase in demand for energy following an efficiency improvement, known as the rebound effect, partially reduce energy savings and the policy impact. Traditionally, researchers have approached the rebound effect by modeling household energy demand based in the standard household theory (unitary model). Nevertheless, recent literature suggests that the resource allocation process within the household may have an impact in the consumption decisions, an effect that traditional models fail to capture. In this paper, we enhance the traditional approach following the collective household theory, which allows us to address the distribution of income and the existence of public goods within the household. We model the demand for energy services having strong public elements (e.g. heating) and analyze how the intra-household negotiation process affects the demand for such services and the rebound effect. Our model suggests that the negotiation process can significantly impact the demand for energy services and, when ignored, it can lead to over or under-estimated rebound effects.


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