Rebound and licensing effects in energy consumption

The overarching goal of this study is to understand how individual consumers behave when faced with changes in energy efficiency of durable household products. For example, does higher energy efficiency translate into a preference for larger refrigerators (high rebound), or more luxurious features (low rebound)? The “rebound effect” examines whether consumers use more energy when faced with improvements in energy efficiency. Our work will add to this literature by examining the rebound effect in the context of individual consumers’ preferences for different attributes and different products. Our findings will improve our understanding of where rebound effects are likely to be larger, and shape policy in differentiated product categories.