ARTICLE IN PRESS

Energy Policy ] (]]]]) ]]]]]]

www.elsevier.com/locate/enpol

The effectiveness of energy efciency improvement in a developing

country: Rebound effect of residential electricity use in South Korea
Sang-Hyeon Jin
Economic and Industrial Policy Research Division, Gangwon Development Research Institute, 9, Joongang-ro 1Ga, Chuncheon-si,
Gangwond-do, 200-041, Republic of Korea
Received 10 April 2007; accepted 18 May 2007

Abstract

The government of South Korea considers an energy efciency improvement policy an effective economic measure for climate change
like many other governments. But it is unaware of any rebound effect, the unexpected result of energy efciency improvement. So the
rebound effect of residential electricity use in South Korea was estimated using two different scales in this paper. At the macro level, the
rebound effect was estimated indirectly by using price elasticity, and at the micro level, the rebound effect of individual home appliances
was estimated directly by using a non-linear relationship between energy efciency and energy use. At the macro level, the long- and
short-term results of rebound effect were estimated at 30% and 38%, respectively. Also at the micro level, the rebound effect of air
conditioners was 5770%; while refrigerators showed only a composite of rebound and income effects. Finally, there was no backre
effect, and efciency improvement brought energy reduction. In conclusion, these suggest that rebound effect is an important factor that
the government of South Korea must consider when planning its energy efciency improvement policy.
r 2007 Elsevier Ltd. All rights reserved.

Keywords: Backre effect; Price elasticity; Price decomposition method

1. Introduction effective are efciency improvement measures in reducing

Presently, major developing countries are consuming a
signicant portion of global energy. Post Kyoto protocol,
it has been the point at issue, whether duties will be
imposed on these countries. So they are trying to reduce
energy use. This is particularly a major challenge to South
Korea because of its export-oriented and energy-intensive
industrial infrastructure. An energy efciency improvement
program is considered an effective economic measure in
South Korea like many other countries. Also, many
researchers have suggested that improving energy efciency
can lead to energy reduction. But they have just estimated
technical savings and do not consider actual consumer
behavior. In other words, energy savings have been
overestimated by ignoring market response to efciency
improvement measures. So an important question is: How
Corresponding author at: Tel.: +82 33 250 1394; fax:+82 33 250 1359.
E-mail address: upperhm@gdri.re.kr
energy use?
Since the oil shock of the 1970s, energy efciency
improvement policies have not actually been as effective
as believed. Policymakers assessed just feasibility, not
actual savings. At that time, it was not a big problem. But
now, it is urgent to reduce the amount of energy
consumption because of climate change. Debates on
efciency improvement naturally end in rebound effect;
meaning the unexpected result of energy efciency
improvement.
The rebound effect is especially important in South
Korea because it is a major oil importer and carbon
dioxide emitter. Energy-intensive industries and consump-
tion patterns pose very difcult problems in South Korea.
It is therefore necessary to estimate rebound effect in South
Korea to assess actual energy savings. Only then will the
effectiveness and the implications of energy efciency
improvement policies be clearly understood. This paper
focuses on residential electricity consumption because

0301-4215/$ - see front matter r 2007 Elsevier Ltd. All rights reserved.
doi:10.1016/j.enpol.2007.05.028

Please cite this article as: Jin, S.-H., The effectiveness of energy efciency improvement in a developing country: Rebound effect of residential electricity
use in South.... Energy Policy (2007), doi:10.1016/j.enpol.2007.05.028
 ARTICLE IN PRESS
2 S.-H. Jin / Energy Policy ] (]]]]) ]]]]]]
ultimately, it is in residential dwellings where energy is
consumed. The rebound effect of residential electricity
consumption was analyzed using two different scales in this
paper. At the macro level, the rebound effect was estimated
indirectly by using price elasticity, and at the micro level,
the rebound effect of individual home appliances was
estimated directly by using a non-linear relationship
between energy efciency and energy use.
2. Overview: energy consumption characteristics of South
Korea
With respect to energy, South Korea is unique. First, it
consumes a signicant amount of energy. It is the 6th
largest importer of oil and the 10th in energy consumption.
Second, the energy intensity of South Korea is increasing
while carbon intensity is stationary unlike other major
developing countries, in which energy intensity (energy/
GDP) and carbon intensity (carbon/GDP) are both
Fig. 1. Relative changes of the intensity effect of energy use and CO2
emissions in Korea compared to 1990 levels (%). Source: Luukkanen and
Kaivo-oja (2002).
Fig. 2. Fuel switching in key developing countries measured by the
difference of the intensity effect of CO2 emissions and the intensity effect
of energy use. Curves with an upward sloping trend indicate increasing
carbonization of the energy production system. Source: Luukkanen and
Kaivo-oja (2002).
Please cite this article as: Jin, S.-H., The effectiveness of energy efciency improvement in a developing country: Rebound effect of residential electricity
use in South.... Energy Policy (2007), doi:10.1016/j.enpol.2007.05.028
decreasing (Fig. 1). Third, in spite of its large energy
consumption, only South Korea has switched energy
sources rapidly and comprehensively (Fig. 2). But South
Koreas energy switching was attributed to nuclear and
natural gas.
In sum, although South Korea switched energy sources,
a signicant amount of energy is still used and energy
intensity is increasing. On account of these realities, South
Korea has to reduce energy consumption and consider
energy efciency improvement. So it is necessary to
estimate the rebound effect in South Korea.
3. Denition and argument of rebound effect
3.1. Definition of rebound effect
Rebound effect is related to consumers tendency to
consume more energy due to economic benet from
efciency improvement (Berkhout et al., 2000). For
example, if a fuel-efcient car has better gas mileage than
others, the cost of fuel per kilometer will fall. Generally
speaking, a price decrease leads to increased consumption.
So some part of expected energy savings can be lost
because people tend to consume more energy services at a
decreased price. This lost part is denoted as rebound
effect. A rebound effect of 10% means that 10% of
expected savings are offset by increased consumption.
Rebound effect can be dened using a simple equation
below (Haas and Biermayr, 2000)
expected savings  actual savings
rebound effect .
expected savings
In particular, a rebound effect of 0% means full
achievement of energy reduction, while 100% means
complete failure. Also, if rebound effect is greater than
100%, efciency improvement measures can even increase
energy use, which is called as backre effect. Eventually, if
a backre effect is noted, efciency improvement measures
are of little use as energy reduction policies.
3.2. Arguments of rebound effect
Discussions on rebound effect elicit various responses
from researchers and policymakers. At rst, when it was
discovered by Khazzoom, Lovins denied its very existence.
But it was proved that Lovins was mistaken and had no
academic basis for his denial (Grepperud and Rasmussen,
2004). Later, researchers developed the theory of rebound
effect into the Khazzoom-Brookes Postulate. Although
there is consensus about the existence of rebound effect,
Howarth (1997) argued that backre effect is impossible
after analyzing a micro economic model. But Saunders
(2000b) countered that Howarth had used a restricted
production function and conrmed that backre effect is
possible at least theoretically.
While some arguments were resolved, rebound effect
theory still has a few issues. It is the range of impact of
 ARTICLE IN PRESS
S.-H. Jin / Energy Policy ] (]]]]) ]]]]]]
rebound effect that continues to be the most contentious
issue. Some researchers argue that the impact of rebound
effect is so negligible that it can be ignored (Bentzen, 2004;
Berkhout et al., 2000; Haas and Biermayr, 2000; Hertwich,
2005; Howarth et al., 2000; Laitner, 2000); others argue
that the impact of rebound effect is so substantial that it
has to be taken seriously (Brannlund et al., 2007;
Grepperud and Rasmussen, 2004; Roy, 2000; Saunders,
2000a). So Greening et al. (2000) reviewed all articles on
rebound effect estimation in US circulation. They showed
that there was no general rule and the range of rebound
effect was very wide. From this, the conclusion can be
drawn that the impact of rebound effect has to be gauged
individually, because each country and sector have very
different consumption characteristics and patterns.
4. Methodology of rebound effect estimation
Estimating rebound effect is a most problematic
endeavor (Haas and Biermayr, 2000). In fact, the absence
of a standard methodology partly contributed to the
debate. Of course, the easiest method is to measure
rebound effect directly. Before beginning an efciency
improvement project, an engineer can calculate how much
energy can be predicted to be conserved. Then, if
researchers are able to check actual energy savings after
the project, the rebound effect can be measured. While such
direct measurement is very simple, it does have some
limitations because it cannot control variables other than
efciency improvement. Income effect, in particular, is also
too important to be omitted.
So two methods were applied to estimate rebound effect
in this paper: indirect estimation and direct estimation.
These two methods did not involve measurement, but
rather estimation. In the indirect estimation process, the
price elasticity of energy was used. As most researchers
have agreed that price elasticity is a useful proxy variable
since Khazzoom rst suggested estimating rebound effect
by using price elasticity in 1980, indirect estimation of
rebound effect is an accepted, academically sound method
(Bentzen, 2004). So this method was named indirect
estimation in this paper, because it does not use any energy
efciency data directly.
In direct estimation, energy efciency and use dataset
was applied. That is, rebound effect can be estimated by
using the non-linear correlation between energy efciency
and use. Generally speaking, most people guess that there
is linear correlation between them. For example, it is
naturally understood that an efcient car will use less oil
(energy). But sometimes this may not be true. Therefore,
the gap between linear correlation and non-linear correla-
tion can be interpreted as the rebound effect (Haas et al.,
1998; Haas and Biermayr, 2000). This method was named
direct estimation in this paper, because it uses energy
efciency and use data directly.
These two methods are also complementary. While
indirect estimation shows rebound effect at the macro
Please cite this article as: Jin, S.-H., The effectiveness of energy efciency improvement in a developing country: Rebound effect of residential electricity
use in South.... Energy Policy (2007), doi:10.1016/j.enpol.2007.05.028
3
level, direct estimation shows it at the micro level. That is,
while indirect estimation uses energy price and use at the
national level, direct estimation uses individual energy
efciency and use at the level of the individual residence. So
these two methods can show rebound effect comprehen-
sively, across different levels.
Residential energy was analyzed because individual
consumers energy consumption is increasing worldwide,
a trend that is not expected to decrease in the future.
Among the diverse energies electricity was selected. The
reason for this is because electricity is used more in
residential dwellings on account of its convenience and has
more accessible data than any other energy. In indirect
estimation, time series data from 1975 to 2005 are used:
electricity consumption, income, price and climate. In
direct estimation, cross-sectional data of two home
appliances in 2002 are used: the refrigerator and the air
conditioner.
5. Indirect estimation of rebound effect
5.1. Electricity demand function
Rebound effect can be dened as the unexpected result
of energy efciency improvement. In other words, rebound
effect is a kind of price effect. That is, rebound effect
becomes evident when energy service prices fall after
efciency improvement. So Khazzoom (1987) induced
rebound effect from energy price elasticity.
rebound effect Zp E.
First of all, the energy demand function is necessary to
estimate price elasticity or rebound effect. The types of
variables which are included in energy demand function
depend on the purpose of the analysis. In this paper, the
dependent variable is residential electricity use and the
independent variables are income, electricity price, cooling
degree days, heating degree days and trend.1 Like other
economic analyses, the natural logarithms of income,
electricity use and price were used to estimate elasticity
ln E a b1 ln I b2 ln P b3 CDD b4 HDD b5 T .
5.2. Asymmetry of price elasticity
Some researchers raised the issue of the symmetry of
price elasticity. Price elasticity is dened as the change in
demand according to price change. The hypothesis of
symmetry, that demand changes of price increase and
decrease are the same, is assumed implicitly in the
denition of elasticity. But this may not be the same. So
1
Electricity use data were offered by Korea Electric Power Corporation.
Income and electricity price data were from the Bank of Korea. And the
numbers of cooling and heating degree days were provided by the Korea
Meteorological Administration.
 ARTICLE IN PRESS
4 S.-H. Jin / Energy Policy ] (]]]]) ]]]]]]

7 Table 1
Elasticity of symmetry and asymmetry model
6
Price symmetry model Price asymmetry model
5
Short-term Long-term Short-term Long-term
4
Price 0.1369 0.1604
3 Pcut 0.3783 0.3046*
Prise 1.7791** 1.8775*
2 Income 0.4674** 0.5294* 0.3452 0.5684*
CDD 0.0008** 0.0003 0.0008** 0.0000
1
HDD 0.0000 0.0001* 0.0000 0.0002*
0 Trend 0.0685 0.0525**

-1 *Signicance at po0.05 and **Signicance at po0.01.

Note: italic gures indicate insignicance at po0.1.
-2
1975 1980 1985 1990 1995 2000 2005 So two models, symmetry and asymmetry, were used to
derive long- and short-term price elasticity (Table 1).
LNPI LNPI_RISE
The results of estimation show that the price elasticity of
LNPI_CUT LNPI_INI
the asymmetry model is more signicant than that of the
Fig. 3. Price decomposition of residential electricity in South Korea, symmetry model.2 Of course, rebound effect is related only
19752005. to price decrease elasticity in the asymmetry model. As a
result, the short-term rebound effect was 38% and the
long-term rebound effect was 30% in the residential
Dargay and Gately (1997) invented a method of price electricity use. In comparing ndings in other countries,
decomposition to estimate two different forms of price residential rebound effect was quite signicant in this
elasticity. Rebound effect, especially, is related only to the nation. Fortunately, there was no backre effect because
elasticity of price decrease. So Haas and Biermayr (2000) the rebound effect was less than 1. This means that
and Bentzen (2004) have all used the price decomposition electricity efciency improvement has led to savings in
method to analyze rebound effect. South Korea but the rebound effect is slightly greater than
The same asymmetry hypothesis of elasticity was used in in other countries.
this paper, too. The feasibility of the asymmetry model can
be checked by indirect estimation. Electricity price was
decomposed to initial price (P0), price increase (Prise) and
price decrease (Pcut). The asymmetry model is below. But 6. Direct estimation of rebound effect
real electricity price has nearly decreased in South Korea
(Fig. 3) 6.1. Dataset and procedure

ln E f j1 ln I j2 ln Pcut j3 ln Prise j4 CDD As Haas and Biermayr (2000) demonstrated in estimat-

j5 HDD j6 T , ing the rebound effect of space heating in Austria,
individual rebound effect can be estimated directly at the
Pt P0 Pcut;t Prise;t , micro level by using the non-linear correlation between
energy efciency and use. Here it is the availability of the
X
t
dataset that is most important in estimating rebound effect
Pcut;t minf0; pi  pi1 g, of individual home appliances directly: accessibility,
i0
reliability, representation, etc.
X
t The Korean government conducts the Energy Census
Prise;t maxf0; pi  pi1 g. every 3 years. But the questionnaire is too broad and
i0 general to use in estimating rebound effect. Instead, the
Korea Electric Power Corporation (KEPCO) conducts the
Survey of Electricity Consumption Characteristics of
5.3. Analysis of price elasticity Home Appliances every other year. The population of
this survey was 15,039,691 households and the sample size
The Error Correction Model was used to estimate was 3,500 households (KEPCO, 2002). Electricity use and
elasticity over the long and short term. The Error 2
Price rise elasticity is quite extensible in this table. But the real price of
Correction Model, which was invented by Sagan in 1964, electricity has nearly decreased during the period. There were only 6
resolves the problem of spurious regression by using long- instances in which price rose. So while price rise elasticity is statistically
term cointegration equation as an instrumental variable. signicant, it is actually a meaningless variable.

Please cite this article as: Jin, S.-H., The effectiveness of energy efciency improvement in a developing country: Rebound effect of residential electricity
use in South.... Energy Policy (2007), doi:10.1016/j.enpol.2007.05.028
 ARTICLE IN PRESS
S.-H. Jin / Energy Policy ] (]]]]) ]]]]]]
efciency data of individual home appliances are included
in this survey.
Two representative home appliances were selected in this
paper: the refrigerator and the air conditioner. Refrigera-
tors consume the greatest proportion of electricity in
residential dwellings and are unique in that they are never
turned off. Also, the current trend is to buy an additional
one and/or to replace it with a larger one; in 2004, 104% of
residential dwellings in South Korea had general refrig-
erators and 48% had one or more special refrigerators, the
so-called kimchi refrigerators. Conversely, air condi-
tioners are a typical seasonal home appliance, although
they also consume a signicant amount of electricity, of
which the peak load is in the summer. So analysis of the
two different home appliances will show the rebound effect
in residential dwellings and provide a contrast that may
yield interesting results. In addition, although efciency of
refrigerator and air conditioners has been improving
rapidly with the progress of technology, their electricity
consumption has never decreased. So it is necessary to
estimate the rebound effect of these two home appliances.
There are three steps in estimating the rebound effect of
individual home appliances. First, determine the non-linear
correlation function. Second, set the initial efciency
needed to improve. Third, set the target efciency to be
improved (Haas and Biermayr, 2000).
6.2. Rebound effect of refrigerator
First of all, an operational denition of refrigerator
efciency is necessary before the estimation process can
commence. The energy service of refrigerators is cooling
food. So the efciency of a refrigerator can be dened as
electricity use (W)/cooling volume (V).
Then three steps of direct estimation were performed.
First, the independent variables of the regression model
were selected by a stepwise method to determine the non-
linear correlation function between energy efciency and
use as illustrated in the equation below:
E ref 8877q  53698q2 98882q3  103890q5 .
Second, refrigerator efciency was divided into 10 grades
to set initial efciency. Grade 9 was selected as the initial
efciency. Here grade 9 represents relatively inefcient and
denotes a need for improvement. Third, grade 2 was
selected as the target efciency. Likewise, it too means
relative efciency under the existing circumstances.
Most people expect the replacement of inefcient
refrigerators (grade 9) with efcient ones (grade 2) to
reduce electricity use to a quantiable point on a linear
line, Eexpected (grade2). However, electricity use actually
increases to a quantiable point on non-linear line,
Eactual (grade2) because the price of cooling service falls with
improving efciency. The gap between Eexpected (grade2)
and Eexpected (grade2) is the rebound effect of refrigerators
(Fig. 4).
Please cite this article as: Jin, S.-H., The effectiveness of energy efciency improvement in a developing country: Rebound effect of residential electricity
use in South.... Energy Policy (2007), doi:10.1016/j.enpol.2007.05.028
5
Fig. 4. Non-linear correlation of refrigerator.
Rebound effect can be dened as take back over
expected energy savings. The rebound effect is 77.4% in
the case of improving inefcient refrigerators (grade 9) to
become more efcient (grade 2), as illustrated in the
equation below:
E actual2  E expected
rebound effect
E actual1  E expected
429:0  319:5
0:774.
460:7  319:5
But it is necessary to change target efciency by various
different grades because the benchmark of minimum
efciency can be set at different levels by government. So
Table 2 shows the sensitivity of target efciency. That is, it
shows the range of rebound effect in the improvement of
refrigerators. As a result, the rebound effect of refrigerators
was 71.784.0%.
This three-step method was suggested by Haas and
Biermayr (2000). But they left out an important factor in
their method-income. Rebound effect is not the only factor
that inuences residential energy consumption; income
does as well. So in this paper, the value of income effect
was checked and it was assessed whether income effect can
be statistically ignored.
As a result of analysis, there was statistically a strong
correlation between refrigerator efciency and income
(Fig. 5). That is, people with high incomes had more
efcient refrigerators and people with low incomes had less
efcient ones. So the above gures are a composite of
rebound and income effects. In other words, pure rebound
effect could not be separated from that of income.
6.3. Rebound effect of air conditioner
Likewise, efciency of air conditioners was dened
operationally as electricity use (W)/cooling area (A). In
the rst step of direct estimation, independent variables
were selected by a stepwise method in a regression model as
 ARTICLE IN PRESS
6 S.-H. Jin / Energy Policy ] (]]]]) ]]]]]]

Table 2
Rebound effect estimates of refrigerator by efciency grade

Efciency (W/ Actual Expected Initial Expected Take back Rebound effect
V) electricity use electricity use electricity use electricity (KWh) (%)
(KWh) (KWh) (KWh) savings (KWh)

Grade 1 0.078 412 289.8 460.7 170.9 122.6 71.7

Grade 2 0.086 429 319.5 460.7 141.2 109.2 77.4
Grade 3 0.092 439 341.8 460.7 118.9 96.8 81.4
Grade 4 0.096 444 356.7 460.7 104.0 87.4 84.0

Note: the initial efciency is 0.124 W/L and the initial electricity use is 460.7 KWh at grade 9.

1000

900

800

700
Incom of Month (10,000 won)

600

500

400

300

200

100

0
0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.20 0.21 0.22 0.23 0.24
Refrigerator Efficiency (W/L)

Fig. 5. Distribution plot between refrigerator efciency and income.

250 illustrated in the equation below. In the second step, the

actual electricity use (KWh)
expected electricity use (KWh)
initial efciency was grade 9, like the refrigerator estima-
Eactual (grade9) tion process. In the third step, the target efciency was also
200 grade 2
Eactual (grade2)
Electricity use (KWh)

rebound effect
E ref 3:0999q  0:0109q2 .
150 Eexpected (grade2)
Fig. 6 shows the non-linear line, linear line, initial
efciency, target efciency and rebound effect. The re-
100 bound effect was 56.569.7% in the case of efciency
linear relation
improvement of inefcient air conditioners (Table 3).
50 Unlike refrigerators, there was no statistically signicant
relation between air conditioner efciency and income
qgrade2 qgrade9 (Fig. 7). This is a very interesting result, because the utility
0 company of Korea has stated that the income of air
0 20 40 60 80 100 120 140
Efficiency (W/A)
conditioner owners is higher than others (KEPCO, 2004).
Of course, air conditioners are one of the most expensive
Fig. 6. Non-linear correlation of air conditioners. home appliances, but efciency has no relation with

Please cite this article as: Jin, S.-H., The effectiveness of energy efciency improvement in a developing country: Rebound effect of residential electricity
use in South.... Energy Policy (2007), doi:10.1016/j.enpol.2007.05.028
 ARTICLE IN PRESS
S.-H. Jin / Energy Policy ] (]]]]) ]]]]]] 7

Table 3
Rebound effect estimates of air conditioner by efciency grade

Efciency (W/ Actual Expected Initial Expected Take back Rebound effect
L) electricity use electricity use electricity use electricity (KWh) (%)
(KWh) (KWh) (KWh) savings (KWh)

Grade 1 86 186 143 219.1 76.3 43.2 56.5

Grade 2 98 199 163 219.1 56.4 36.4 64.4
Grade 3 100 201 166 219.1 53.1 34.9 65.7
Grade 4 106 206 176 219.1 43.2 30.1 69.7

Note: the initial efciency is 132.2 W/area and the initial electricity use is 219.1 KWh at grade 9.

1000

900

800

700
Incom fo Month (10,00 won)

600

500

400

300

200

100

0
30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200
Airconditioner Efficiency (W/A)

Fig. 7. Distribution plot between air conditioner efciency and income.

income.3 So, unlike the case with refrigerators, it was
possible to estimate pure rebound effect independently of
income in air conditioners.
7. Conclusion and policy implication
The rebound effect of residential electricity use was
estimated in this paper. Rebound effects at the macro level
over the short- and long-term were 38% and 30%,
respectively. At the micro level, the rebound effect of air
conditioner was estimated at 5770%, with refrigerators
showing only a composite of rebound and income effects.
3
One reason for this is perhaps because the older model air conditioners,
which people with high income bought in the 1990s, are still working
today.
Obviously, as the rebound effect was smaller than 1 or
100%, there was no backre effect in the residential
electricity consumption in South Korea. So it can be
inferred that increase in electricity use was due not to
efciency improvement, but to income increases, price
reduction in electricity and other such trends. Further
research is needed to conrm whether the price of
electricity controlled by government reects market price
or includes external costs, such as carbon tax.
In conclusion, rebound effect can be used as another
criterion for the effectiveness of efciency improvement
policy. In comparison with other countries, the rebound
effect in South Korea was signicant. Fortunately, the
government of South Korea does not support general
household to improve efciency. It supports only industry
and building. Of course, other sectors might also have as

Please cite this article as: Jin, S.-H., The effectiveness of energy efciency improvement in a developing country: Rebound effect of residential electricity
use in South.... Energy Policy (2007), doi:10.1016/j.enpol.2007.05.028
 ARTICLE IN PRESS
8 S.-H. Jin / Energy Policy ] (]]]]) ]]]]]]
substantial a rebound effect as residential electricity use. So
the signicance of this paper is that it identies the need to
estimate rebound effect of present energy efciency
improvement projects. The government has to accurately
gauge the effectiveness of energy efciency improvement
measures by taking rebound effect into consideration.
Also, it has to understand which part is more effective for
reducing energy use by improving energy efciency.
Acknowledgments
I would like to thank JeongJeon Rhee, JungWk Kim and
SunJin Yun of Seoul National University for their advice
and suggestions. I also appreciate helpful comments by
YoungHwan Ahn of Korea Energy Economics Institute
and OhDae Gyun of Korea Energy Management Corpora-
tion. Any remaining errors are the responsibility of the
author.
References
Bentzen, J., 2004. Estimating the rebound effect in US manufacturing
energy consumption. Energy Economics 26, 123134.
Berkhout, P.H.G., Muskens, J.C., Velthuijsen, J.W., 2000. Dening the
rebound effect. Energy Policy 28, 425432.
Brannlund, R., Ghalwash, T., Nordstom, J., 2007. Increased energy
efciency and the rebound effect: effects on consumption and
emissions. Energy Economics 29, 117.
Dargay, J.M., Gately, D., 1997. The demand for transportation fuels:
imperfect price-reversibility? Transportation Research Part B 31 (1),
7182.
Please cite this article as: Jin, S.-H., The effectiveness of energy efciency improvement in a developing country: Rebound effect of residential electricity
use in South.... Energy Policy (2007), doi:10.1016/j.enpol.2007.05.028
Greening, L.A., Greene, D.L., Diglio, C., 2000. Energy efciency
and consumption: the rebound effect: a survey. Energy Policy 28,
389401.
Grepperud, S., Rasmussen, I., 2004. A general equilibrium assessment of
rebound effects. Energy Economics 26, 261282.
Haas, R., Biermayr, P., 2000. The rebound effect for space heating
empirical evidence from Austria. Energy Policy 28, 403410.
Haas, R., Auer, H., Biermayr, P., 1998. The impact of consumer behavior
on residential energy demand for space heating. Energy and Buildings
27, 195205.
Hertwich, E.G., 2005. Consumption and the rebound effect: an industrial
ecology perspective. Journal of Industrial Ecology 9, 8597.
Howarth, R.B., 1997. Energy efciency and economic growth. Con-
temporary Economic Policy 15, 18.
Howarth, R.B., Haddad, B.M., Paton, B., 2000. The economics of energy
efciency: insights from voluntary participation programs. Energy
Policy 28, 477486.
Khazzoom, D.J., 1987. Energy saving resulting from the adoption of more
efcient appliances. Energy Journal 8, 8589.
Korea Electric Power Corporation (KEPCO), 2002. Survey of Electricity
Consumption Characteristics of Home Appliances.
Korea Electric Power Corporation (KEPCO), 2004. Survey of Electricity
Consumption Characteristics of Home Appliances.
Laitner, J.A.S., 2000. Energy efciency: rebounding to a sound analytical
perspective. Energy Policy 28, 471475.
Luukkanen, J., Kaivo-oja, J., 2002. Meaningful participation in global
climate policy: comparative analysis of the energy and CO2 efciency
dynamics of key developing countries. Global Environmental Change
12, 117126.
Roy, J., 2000. The rebound effect-some empirical evidence from India.
Energy Policy 28, 433438.
Saunders, H.D., 2000a. A view from the macro side: rebound, backre,
and Khazzoom-Brookes. Energy Policy 28, 439449.
Saunders, H.D., 2000b. Does predicted rebound depend on distinguishing
between energy and energy services. Energy Policy 28, 497500.