Outlier

How bouncy is the “Rebound Effect”?

When a homeowner purchases a new highly energy-efficient air conditioner, that means that running the A/C will become less expensive–because it won’t consume as much electricity when it runs.

But if it costs less to operate, then will the owner use their A/C much more often than before? If so, then the increased use of the A/C could offset some of the energy efficiency benefits of the new air conditioner.

This phenomenon, which also comes up in the context of how a driver’s habits may change when they purchase a fuel-efficient vehicle, is known as the “Rebound Effect.”

The question is: how big is the “Rebound Effect”?

The answer, according to a white paper published today by the non-profit organization American Council for an Energy Efficient Economy, is “not very large.” The direct rebound effect appears to amount to 10% or less in most cases–implying that a homeowner who buys an efficient air-conditioner might end up running it slightly more often than their old system.

Even given this slight uptick in appliance usage, the paper asserts that the net outcome of energy-efficiency programs and policies is still a clear and meaningful reduction in total energy use.

Read more about the rebound effect in ACEEE’s white paper, The Rebound Effect: Large or Small?.

  • @mattreisman

    Very interesting, any research you can point to on the indirect rebound effect?

    • Anonymous

      Hey Matt- The ACEEE white paper addresses the indirect rebound effect (defined as the “impact of re-spending the money that consumers and businesses save from improved energy efficiency”), suggesting that it amounts to ~11%. More details at http://aceee.org/white-paper/rebound-effect-large-or-small

About Outlier

Outlier explores trends in how people are using energy at home. Pulling from an unprecedented (and still growing) amount of energy data—currently drawn from 50 million homes—Opower crunches energy-use information from more than 75 utility partners every day, and cross-references that with weather, household, and demographic information to produce compelling analyses in the Outlier series.