[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/zbw/rwirep/934.html
   My bibliography  Save this paper

Energy efficiency and local rebound effects: Theory and experimental evidence from Rwanda

Author

Listed:
  • Munyehirwe, Anicet
  • Peters, Jörg
  • Sievert, Maximiliane
  • Bulte, Erwin H.
  • Fiala, Nathan
Abstract
Energy efficiency is a key component of climate policy. We study micro and macro rebound effects after the introduction of energy-efficient biomass cookstoves (EEBCs). We develop a model of biomass supply and demand in rural Africa. The impact of EEBCs is empirically explored in Rwanda where we randomly varied subsidy levels for EEBCs at the village-level. Demand is price elastic, so we exploit exogenous saturation variation to study local rebound effects. While adoption of EEBCs reduces household firewood consumption, we find no meaningful local rebound effects and identify conditions under which this finding generalizes to other settings - or not.

Suggested Citation

  • Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane & Bulte, Erwin H. & Fiala, Nathan, 2022. "Energy efficiency and local rebound effects: Theory and experimental evidence from Rwanda," Ruhr Economic Papers 934, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:934
    DOI: 10.4419/96973094
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/250071/1/1789066433.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.4419/96973094?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marshall Burke & Lauren Falcao Bergquist & Edward Miguel, 2019. "Sell Low and Buy High: Arbitrage and Local Price Effects in Kenyan Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 785-842.
    2. Jesse M Cunha & Giacomo De Giorgi & Seema Jayachandran, 2019. "The Price Effects of Cash Versus In-Kind Transfers," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 240-281.
    3. Rema Hanna & Esther Duflo & Michael Greenstone, 2016. "Up in Smoke: The Influence of Household Behavior on the Long-Run Impact of Improved Cooking Stoves," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 80-114, February.
    4. Lenz, Luciane & Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane, 2017. "Does Large-Scale Infrastructure Investment Alleviate Poverty? Impacts of Rwanda’s Electricity Access Roll-Out Program," World Development, Elsevier, vol. 89(C), pages 88-110.
    5. Shankar, Anita V. & Quinn, Ashlinn K. & Dickinson, Katherine L. & Williams, Kendra N. & Masera, Omar & Charron, Dana & Jack, Darby & Hyman, Jasmine & Pillarisetti, Ajay & Bailis, Rob & Kumar, Praveen , 2020. "Everybody stacks: Lessons from household energy case studies to inform design principles for clean energy transitions," Energy Policy, Elsevier, vol. 141(C).
    6. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
    7. LaFave, Daniel & Beyene, Abebe Damte & Bluffstone, Randall & Dissanayake, Sahan T.M. & Gebreegziabher, Zenebe & Mekonnen, Alemu & Toman, Michael, 2021. "Impacts of improved biomass cookstoves on child and adult health: Experimental evidence from rural Ethiopia," World Development, Elsevier, vol. 140(C).
    8. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    9. Randall A. Bluffstone & Abebe D. Beyene & Zenebe Gebreegziabher & Peter Martinsson & Alemu Mekonnen & Ferdinand Vieider, 2021. "Does Providing Improved Biomass Cooking Stoves Free-of-Charge Reduce Regular Usage? Do Use Incentives Promote Habits?," Land Economics, University of Wisconsin Press, vol. 97(1), pages 180-195.
    10. Kenneth Gillingham & David Rapson & Gernot Wagner, 2016. "The Rebound Effect and Energy Efficiency Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 68-88.
    11. Karthik Muralidharan & Paul Niehaus & Sandip Sukhtankar, 2023. "General Equilibrium Effects of (Improving) Public Employment Programs: Experimental Evidence From India," Econometrica, Econometric Society, vol. 91(4), pages 1261-1295, July.
    12. Manuel Frondel & Jorg Peters & Colin Vance, 2008. "Identifying the Rebound: Evidence from a German Household Panel," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 145-164.
    13. Meredith Fowlie & Michael Greenstone & Catherine Wolfram, 2018. "Do Energy Efficiency Investments Deliver? Evidence from the Weatherization Assistance Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1597-1644.
    14. Nathan W. Chan & Kenneth Gillingham, 2015. "The Microeconomic Theory of the Rebound Effect and Its Welfare Implications," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(1), pages 133-159.
    15. Dennis Egger & Johannes Haushofer & Edward Miguel & Paul Niehaus & Michael Walker, 2022. "General Equilibrium Effects of Cash Transfers: Experimental Evidence From Kenya," Econometrica, Econometric Society, vol. 90(6), pages 2603-2643, November.
    16. Sarah Baird & J. Aislinn Bohren & Craig McIntosh & Berk Özler, 2018. "Optimal Design of Experiments in the Presence of Interference," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 844-860, December.
    17. David I Levine & Theresa Beltramo & Garrick Blalock & Carolyn Cotterman & Andrew M Simons, 2018. "What Impedes Efficient Adoption of Products? Evidence from Randomized Sales Offers for Fuel-Efficient Cookstoves in Uganda," Journal of the European Economic Association, European Economic Association, vol. 16(6), pages 1850-1880.
    18. Gillingham, Kenneth, 2014. "Identifying the elasticity of driving: Evidence from a gasoline price shock in California," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 13-24.
    19. Bensch, Gunther & Grimm, Michael & Peters, Jörg, 2015. "Why do households forego high returns from technology adoption? Evidence from improved cooking stoves in Burkina Faso," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 187-205.
    20. Agha Ali Akram & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2017. "Effects of Emigration on Rural Labor Markets," NBER Working Papers 23929, National Bureau of Economic Research, Inc.
    21. Unknown, 2016. "Energy for Sustainable Development," Conference Proceedings 253270, Guru Arjan Dev Institute of Development Studies (IDSAsr).
    22. Lucas W. Davis & Alan Fuchs & Paul Gertler, 2014. "Cash for Coolers: Evaluating a Large-Scale Appliance Replacement Program in Mexico," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 207-238, November.
    23. Zein-Elabdin, Eiman O., 1997. "Improved stoves in Sub-Saharan Africa: the case of the Sudan," Energy Economics, Elsevier, vol. 19(4), pages 465-475, October.
    24. Robert Bailis & Rudi Drigo & Adrian Ghilardi & Omar Masera, 2015. "The carbon footprint of traditional woodfuels," Nature Climate Change, Nature, vol. 5(3), pages 266-272, March.
    25. Karthik Muralidharan & Venkatesh Sundararaman, 2015. "Editor's Choice The Aggregate Effect of School Choice: Evidence from a Two-Stage Experiment in India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(3), pages 1011-1066.
    26. Alem, Yonas, 2021. "Mitigating climate change through sustainable technology adoption: Insights from cookstove interventions," Ruhr Economic Papers 907, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    27. Jones, Donald W., 1988. "Some simple economics of improved cookstove programs in developing countries," Resources and Energy, Elsevier, vol. 10(3), pages 247-264, September.
    28. Gebreegziabher, Zenebe & Beyene, Abebe D. & Bluffstone, Randall & Martinsson, Peter & Mekonnen, Alemu & Toman, Michael A., 2018. "Fuel savings, cooking time and user satisfaction with improved biomass cookstoves: Evidence from controlled cooking tests in Ethiopia," Resource and Energy Economics, Elsevier, vol. 52(C), pages 173-185.
    29. Lucas W. Davis, 2008. "Durable goods and residential demand for energy and water: evidence from a field trial," RAND Journal of Economics, RAND Corporation, vol. 39(2), pages 530-546, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ensieh Shojaeddini & Ben Gilbert, 2023. "Heterogeneity in the Rebound Effect: Evidence from Efficient Lighting Subsidies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 173-217, January.
    2. Chan, Nathan W. & Globus-Harris, Isla, 2023. "On consumer incentives for energy-efficient durables," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    3. Lang, Ghislaine & Lanz, Bruno, 2022. "Climate policy without a price signal: Evidence on the implicit carbon price of energy efficiency in buildings," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    4. Mark A. Andor & David H. Bernstein & Stephan Sommer, 2021. "Determining the efficiency of residential electricity consumption," Empirical Economics, Springer, vol. 60(6), pages 2897-2923, June.
    5. Bruno Lanz and Evert Reins, 2021. "Asymmetric Information on the Market for Energy Efficiency: Insights from the Credence Goods Literature," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    6. Gunther Bensch & Jörg Peters, 2020. "One‐Off Subsidies and Long‐Run Adoption—Experimental Evidence on Improved Cooking Stoves in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 72-90, January.
    7. Miriam Berretta & Joshua Furgeson & Yue (Nicole) Wu & Collins Zamawe & Ian Hamilton & John Eyers, 2021. "Residential energy efficiency interventions: A meta‐analysis of effectiveness studies," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.
    8. LaFave, Daniel & Beyene, Abebe Damte & Bluffstone, Randall & Dissanayake, Sahan T.M. & Gebreegziabher, Zenebe & Mekonnen, Alemu & Toman, Michael, 2021. "Impacts of improved biomass cookstoves on child and adult health: Experimental evidence from rural Ethiopia," World Development, Elsevier, vol. 140(C).
    9. Mekonnen, Alemu & Beyene, Abebe & Bluffstone, Randy & Gebreegziabher, Zenebe & Martinsson, Peter & Toman, Michael & Vieider, Ferdinand, 2022. "Do improved biomass cookstoves reduce fuelwood consumption and carbon emissions? Evidence from a field experiment in rural Ethiopia," Ecological Economics, Elsevier, vol. 198(C).
    10. Kenichi Mizobuchi & Kenji Takeuchi, 2019. "Rebound effect across seasons: evidence from the replacement of air conditioners in Japan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 123-140, January.
    11. Jeuland, Marc & Tan Soo, Jie-Sheng & Shindell, Drew, 2018. "The need for policies to reduce the costs of cleaner cooking in low income settings: Implications from systematic analysis of costs and benefits," Energy Policy, Elsevier, vol. 121(C), pages 275-285.
    12. Bensch, Gunther & Jeuland, Marc & Lenz, Luciane & Ndiaye, Ousmane, 2023. "A bridge to clean cooking? The cost-effectiveness of energy-efficient biomass stoves in rural Senegal," Ruhr Economic Papers 1057, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Davis, Lucas W. & Martinez, Sebastian & Taboada, Bibiana, 2020. "How effective is energy-efficient housing? Evidence from a field trial in Mexico," Journal of Development Economics, Elsevier, vol. 143(C).
    14. Gregory Casey, 2024. "Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(1), pages 192-228.
    15. Kenneth Gillingham & David Rapson & Gernot Wagner, 2016. "The Rebound Effect and Energy Efficiency Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 68-88.
    16. Rose, Julian & Bensch, Gunther & Munyehirwe, Anicet & Peters, Jörg, 2022. "The forgotten coal: Charcoal demand in sub-Saharan Africa," World Development Perspectives, Elsevier, vol. 25(C).
    17. Joshua Blonz, 2019. "The Welfare Costs of Misaligned Incentives: Energy Inefficiency and the Principal-Agent Problem," Finance and Economics Discussion Series 2019-071, Board of Governors of the Federal Reserve System (U.S.).
    18. Davis, Lucas & Martinez, Sebastian & Taboada, Bibiana, 2018. "How Effective is Energy-efficient Housing?: Evidence From a Field Experiment in Mexico," IDB Publications (Working Papers) 8767, Inter-American Development Bank.
    19. James Carroll & Eleanor Denny & Ronan C. Lyons, 2020. "Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment," Trinity Economics Papers tep1520, Trinity College Dublin, Department of Economics.
    20. Judson Boomhower & Lucas Davis, 2020. "Do Energy Efficiency Investments Deliver at the Right Time?," American Economic Journal: Applied Economics, American Economic Association, vol. 12(1), pages 115-139, January.

    More about this item

    Keywords

    Energy efficiency; macro-rebound effect; technology adoption; improved cooking;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:rwirep:934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.