Rebound effects of energy efficiency improvement based on computable general equilibrium models: a systematic review

Abstract

Energy efficiency improvement is expected to reduce energy consumption. However, actual energy savings can be lower than anticipated, called rebound effects. This article reviews previous studies that have used computable general equilibrium (CGE) models to study the rebound effects caused by energy efficiency improvements in the recent two decades until 2021. A systematic review approach has been adopted to select the focused studies, and keywords co-occurrence analysis has been used to explore the characteristics of the selected studies. We reported our findings on specific aspects of these CGE studies, including geographic location, time scale, and methodological features; how an energy efficiency improvement is introduced; and the levels of rebound effects estimated by these studies. These findings suggest specific potential research gaps. For example, few CGE studies have focused on Russia, India, and Africa; no production functional forms other than constant elasticity of substitution (CES) have been used in these CGE studies; and little attention has been paid to negative rebound effects in the short run and the cases of joint implementation of energy efficiency improvement and other policy measures that drive energy cost higher.