Ruhr Economic Papers

Ruhr Economic Papers #227

Heterogeneity in the Rebound Effect – Further Evidence for Germany

by Manuel Frondel, Nolan Ritter and Colin Vance

RWI, RUB, 11/2010, 26 S./p., 8 Euro, ISBN 978-3-86788-259-0



Rebound effects measure the behaviorally induced off set in the reduction of energy consumption following efficiency improvements. Using both panel estimation and quantile-regression methods on household travel diary data collected in Germany between 1997 and 2009, this study investigates the heterogeneity of the rebound effect in private transport. With the average rebound effect being in the range of 57% to 62%, our results are in line with a recent German study by FRONDEL, PETERS, and VANCE (2008), but are substantially larger than those obtained from other studies. Furthermore, our quantile-regression results indicate that the magnitude of estimated fuel price elasticities – from which rebound effects can be derived – depends inversely on the household’s driving intensity: Households with low vehicle mileage exhibit fuel price elasticities, and hence rebound effects, that are significantly larger than those for households with high vehicle mileage.

JEL-Classification: D13, Q41

Keywords: Automobile travel; rebound effect; panel models; quantile regression

Published as:

Frondel, M., N. Ritter and C. Vance (2012), Heterogeneity in the Rebound: Further Evidence for Germany. Energy Economics 34 : 461-467.