Sectoral Electricity Demand and Direct Rebound Effects inNew Zealand

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 t...

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Bibliographic Details
Published in:The Energy journal (Cambridge, Mass.) Mass.), 2021-07, Vol.42 (4), p.153-174
Main Authors: Nepal, Rabindra, Irsyad, Muhammad Indra al, Jamasb, Tooraj
Format: Article
Language:English
Subjects:
Consumption
Electric power demand
Electricity
Electricity consumption
Electricity pricing
Energy conservation
Energy consumption
Energy efficiency
Energy management
Environmental policy
Policies
Residential areas
Residential energy
Specific energy
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Summary: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.
ISSN:0195-6574
1944-9089
DOI:10.5547/01956574.42.4.rnep