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Sectoral electricity demand and direct rebound effects in New Zealand

Journal Article


Abstract


  • Copyright © 2021 by the IAEE. All rights reserved. This paper is one of the limited studies to investigate rebound effects in sectoral electricity consumption and the specific case of New Zealand. New Zealand, like other OECD economies, has aimed for energy efficiency improvements and reduced electricity consumption from 9.2 MWh per capita in 2010 to 8.6 MWh per capita in 2015. However, following a significant decline since 2010, electricity consumption in the main New Zealand sectors is increasing. Energy conservation could play an important role in meeting the growing demand for electricity but rebound effects can affect the effectiveness of conservation policies. We decompose the sectoral electricity prices to capture the asymmetric demand response to electricity price changes and estimate electricity demand elasticity during 1980 and 2015 to estimate the sectoral rebound effects. We find partial rebound effects of 54% and 23% in the industrial and commercial sectors respectively while we find no rebound effect at the aggregate level. The rebound effect is insignificant in the residential sector. These findings lead to policy recommendations for sector specific energy conservation measures and policies.

UOW Authors


  •   Nepal, Rabindra
  •   Al irsyad, Muhammad (external author)
  •   Jamasb, Tooraj (external author)

Publication Date


  • 2021

Citation


  • Nepal, R., Al irsyad, M. & Jamasb, T. (2021). Sectoral electricity demand and direct rebound effects in New Zealand. Energy Journal, 42 (4), 153-173.

Scopus Eid


  • 2-s2.0-85092756395

Number Of Pages


  • 20

Start Page


  • 153

End Page


  • 173

Volume


  • 42

Issue


  • 4

Place Of Publication


  • United States

Abstract


  • Copyright © 2021 by the IAEE. All rights reserved. This paper is one of the limited studies to investigate rebound effects in sectoral electricity consumption and the specific case of New Zealand. New Zealand, like other OECD economies, has aimed for energy efficiency improvements and reduced electricity consumption from 9.2 MWh per capita in 2010 to 8.6 MWh per capita in 2015. However, following a significant decline since 2010, electricity consumption in the main New Zealand sectors is increasing. Energy conservation could play an important role in meeting the growing demand for electricity but rebound effects can affect the effectiveness of conservation policies. We decompose the sectoral electricity prices to capture the asymmetric demand response to electricity price changes and estimate electricity demand elasticity during 1980 and 2015 to estimate the sectoral rebound effects. We find partial rebound effects of 54% and 23% in the industrial and commercial sectors respectively while we find no rebound effect at the aggregate level. The rebound effect is insignificant in the residential sector. These findings lead to policy recommendations for sector specific energy conservation measures and policies.

UOW Authors


  •   Nepal, Rabindra
  •   Al irsyad, Muhammad (external author)
  •   Jamasb, Tooraj (external author)

Publication Date


  • 2021

Citation


  • Nepal, R., Al irsyad, M. & Jamasb, T. (2021). Sectoral electricity demand and direct rebound effects in New Zealand. Energy Journal, 42 (4), 153-173.

Scopus Eid


  • 2-s2.0-85092756395

Number Of Pages


  • 20

Start Page


  • 153

End Page


  • 173

Volume


  • 42

Issue


  • 4

Place Of Publication


  • United States