Emissionsstandards für Neuwagen: Die Crux mit dem Rebound
The energy savings achieved through efficiency improvements are often offset through increased energy demand, as when a motorist drives more upon acquiring a more efficient car. The size of this behavioral response, referred to as the rebound effect, is of relevance in evaluating efficiency standards, such as the European Commission’s legislation requiring automakers to meet fleet-wide CO2 targets for new cars. Our estimates of the rebound effect suggest that over half of the potential energy saving from these targets is lost to increased driving.
Frondel, M. and C. Vance (2017), Emissionsstandards für Neuwagen: Die Crux mit dem Rebound. WiSt – Wirtschaftswissenschaftliches Studium , 46, 1, 25-29