Spend, save and splurge - the rebound effect of energy efficiency initiatives

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2008

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University of Cape Town

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University of Cape Town

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Energy Efficiency (EE) and Demand Side Management (DSM) programs are being implemented throughout the world’s energy sectors, with the intention of managing the demand for energy services, improving energy security and reducing the externalities of electricity production. However, the rebound effect has meant that the actual savings in energy demand are often less than expected making these costly programs ineffective, or worse raising consumption. In this paper, we define the rebound effect of EE and DSM initiatives in the electricity sector, summarise the literature, and provide the foundation for investigating the extent and causes of rebound in the South African residential sector.
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