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The rebound effect is generally expressed as a ratio of the lost benefit compared to the expected environmental benefit when holding consumption constant. [ 7 ] For instance, if a 5% improvement in vehicle fuel efficiency results in only a 2% drop in fuel use, there is a 60% rebound effect (since (5-2) ⁄ 5 = 60%). [ 8 ]
Some environmental economists have proposed that efficiency gains be coupled with conservation policies that keep the cost of use the same (or higher) to avoid the Jevons paradox. [8] Conservation policies that increase cost of use (such as cap and trade or green taxes) can be used to control the rebound effect. [9]
Limited behaviour barriers may include people choosing easier, yet less effective, pro-environmental behavioural changes (e.g. recycling, metal straws), and the rebound effect, which occurs when a positive environmental behaviour is followed by one that negates it (e.g. saving money with an electric car to then buy a plane ticket). [3]
For example, a doubling of technological efficiency, or equivalently a reduction of the T-factor by 50%, does not necessarily reduce the environmental impact (I) by 50% if efficiency induced price reductions stimulate additional consumption of the resource that was supposed to be conserved, a phenomenon called the rebound effect or Jevons paradox.
There are several limits to green growth. As described by the European Environmental Bureau (EEB), seven barriers could make green growth wishful thinking. These barriers are as follows: [64] - Rising energy costs. The more natural resources are needed, the more expensive it will be to extract them. - Rebound effects. Improved efficiency is ...
These cycles can be seen as a rebound effect, also known in environmental economics as Jevon's paradox: as more water is available, water consumption tends to increase. This can result in a vicious cycle: a new water shortage can be addressed by further expansion of reservoir storage to increase water availability , which enables more water ...
He emphasizes the importance of (global) environmental policies, such as pricing externalities through taxes or permits, which incentivize behavior changes that reduce environmental impact and which provide essential information for consumers and help manage rebound effects. Effective environmental regulation through pricing is crucial for ...
There are three behavioural sub-theories to be considered: the direct rebound effect, which anticipates increased use of the energy service that was improved; the indirect rebound effect, which considers an increased income effect created by savings then allowing for increased energy consumption, and; the economy-wide effect, which results from ...