The extent to which adopting energy-efficient technologies results in energy savings depends on how such technologies are used, and how monetary savings from energy efficiency are spent. Energy rebound occurs when potential energy savings are diminished due to post-adoption behaviour. It denotes that potential energy savings of adopting an energy-efficient technology or practice, possibly triggered by some policy, are offset by subsequent behavioural and systemic responses that increase energy use, resulting in diminished net energy savings.
Three main types of rebound are: direct rebound or intensity-of-use effect – a technology becomes more energy-efficient and thus less costly in its use, causing consumers or producers to use it more intensively; indirect rebound or re-spending effect – spending less due to using a more energyefficient technology releases money that is subsequently spent on other products or services that use energy over their life cycle; and economy-wide rebound – more energy efficiency leads to many other changes in the economy, such as investments in expansion of production, impacts on capital and labour markets, and indirectly increases in consumption, all with consequences for energy use. The figure illustrates these rebound types, and their joint impact on energy savings, for the case of switching to a more fuel-efficient car.
We review empirical studies on how six behavioural regularities affect three energy-relevant decisions and ultimately rebound: adoption of energy-saving products or practices, their intensity of use and spending of associated monetary savings. The table with a summary of the findings indicates that behaviours that reflect limited rationality and willpower may increase rebound, while the effects of behaviours driven by bounded self-interest are less clear. We then describe how interventions associated with each of the behavioural regularities can influence rebound and thus serve to achieve higher energy savings. Future research ought to study energy-relevant decisions in a more integrated manner, with a particular focus on re-spending as this presents the greatest challenge for research and policy.