Posts Tagged ‘Jevons’

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From rebound to backfire: Tierney column examines limits to use of energy efficiency policy to pursue energy conservation

March 8, 2011

Michael Giberson

John Tierney’s column, “When Energy Efficiency Sullies the Environment,” in the New York Times examines the rebound effect and some of the broader consequences of trying to promote conservation through policies inducing energy efficiency.

Some of the biggest rebound effects occur when new economic activity results from energy-efficient technologies that reduce the cost of making products like steel or generating electricity. In some cases, the overall result can be what’s called “backfire”: more energy use than would have occurred without the improved efficiency.

Another term for backfire is the Jevons Paradox, named after a 19th-century British economist who observed that while the steam engine extracted energy more efficiently from coal, it also stimulated so much economic growth that coal consumption increased. That paradox was mostly ignored by modern environmentalists, who have argued that rebound effects are much smaller today.

But economists keep finding contrary evidence. When Britain’s UK Energy Research Center reviewed more than 500 studies on the subject, it rejected the assumption that rebound effects were small enough to be disregarded. The author of the 2007 report, Steve Sorrell, noted that these effects could, in some circumstances, “potentially increase energy consumption in the long term.”

A similar conclusion comes from a survey of the literature published last month by the Breakthrough Institute, an American research group that studies ways to slow global warming. Its authors, Jesse Jenkins, Ted Nordhaus and Michael Shellenberger, warn that “rebound effects are real and significant,” and could sometimes erode all the expected reductions in emissions. (Links in source.)

Tierney also mentions the research on the potential rebound effect associated with solid-state lighting, mentioned here last year.

His final paragraph is on target: with or without public policy pushing us along, we will continue to use energy more efficiently – just don’t expect it to lead to less energy consumption overall.

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When to worry about the Jevons Paradox

September 6, 2010

Michael Giberson

Tom Konrad explains, “When it Makes Sense to Worry About Jevons Paradox, and When it Doesn’t.”

Konrad highlights the critical point – whether demand for the good in question is elastic or inelastic – and suggests that the demand for electric power is relatively inelastic and therefore the demand for lighting is inelastic, hence reductions in the cost of lighting will not lead to more that proportionate increases in the quantity of lighting consumed. Konrad:

When candles were the primary light source, acquiring light required a lot more effort than just flipping on a light switch, and it was possible to see the light you purchased being used up as a candle burned down. Today, we would have to go outside our house (at night) and watch the meter spin to see visual evidence of the cost of light, and even then it would be difficult if not impossible to isolate the effect of the cost of light from the cost of watching TV or running our refrigerator.

Because it’s much harder today for a consumer to determine the true cost of the light he is using, I expect that consumers will be much less sensitive to changes in the price of light than they were in the past.

Two background factors may work against Konrad’s view. If, for example, the real price of electric power increases over the next twenty years, the higher price would increase the salience of the price and reward consumer’s efforts to economize in its use. Further, whether or not the real price of power increases, it is becoming easier for consumers to identify and track power consumption on a socket-by-socket or circuit-by-circuit basis.

Of course don’t jump to the conclusion that just because more efficient lamps may lead to an increase in the consumption of energy, that more efficient lamps are a bad thing. Improvements in technical efficiency increase the ranges of choices to consumers such that consumers are not worse off. It just may be the case that promoting improved efficiency in lighting is not an effective energy conservation strategy.

In the case of automobile efficiency, Konrad notes that the elasticity of demand for driving has increased in recent years, which leads the Jevons Paradox to be a concern if one expects fuel economy regulations to do much to reduce oil consumption.

NOTES: Konrad’s post is in part a reaction to my post last week on the potential for efficient lighting to lead to increased energy consumption; my post relied on an article in The Economist, which in turn drew upon this research article in The Journal of Physics D: Applied Physics.

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The Economist: Making lighting more efficient could increase energy use

September 2, 2010

Michael Giberson

The current issue of The Economist reports on research that concluded “making lighting more efficient could increase energy use, not decrease it.”

SOLID-STATE lighting, the latest idea to brighten up the world while saving the planet, promises illumination for a fraction of the energy used by incandescent or fluorescent bulbs. A win all round, then: lower electricity bills and (since lighting consumes 6.5% of the world’s energy supply) less climate-changing carbon dioxide belching from power stations.

Well, no. Not if history is any guide. Solid-state lamps … will indeed make lighting better. But precedent suggests that this will serve merely to increase the demand for light. The consequence may not be just more light for the same amount of energy, but an actual increase in energy consumption, rather than the decrease hoped for by those promoting new forms of lighting.

Lighting efficiency is just the latest in a long line of examples of the Jevons Paradox – the observation made in 1865 by William Stanley Jevons that increasing the efficiency with which a fuel is used may increase the overall consumption of the fuel. (Also sometimes called “the rebound effect.”)  Jevons observed that improvements in the efficiency of coal use led to increases in coal consumption.

Conservationists and environmentalists sometimes complain about the Jevons Paradox, note the defensive tone from Energy Circle, “The Jevons Paradox: Time to Send it The Way of the Dodo?,” or The Encyclopedia of Earth entry on the paradox. But is isn’t the case that the lower-cost based rebound is always so big as to overwhelm efficiency-based savings.  The key issue, Edward Glaeser reminds us in a recent column, is “that the demand for the thing in question (power, vehicle miles, tasty cookies, cigarettes) has to be sufficiently elastic with respect to the thing’s price.”

The Economist‘s story draws on an article recently published in the Journal of Physics D: Applied Physics by Jeff Tsao and co-authors, “Solid-state lighting: an energy-economics perspective.”  The magazine sums up the piece as concluding that new, highly efficient solid-state lighting could increase the consumption of light by ten times over the next 20 years, and even though those lights will be more efficient, energy consumption for lighting would double (if the real price of electricity remains stable).  That would make for a pretty big rebound.

NOTE: There is much more detail on the assumptions and calculations that went into the conclusion reported in The Economist. Related research is available from Sandia National Lab. Here’s the full abstract of the Tsao, et al. article:

Abstract: Artificial light has long been a significant factor contributing to the quality and productivity of human life. As a consequence, we are willing to use huge amounts of energy to produce it. Solid-state lighting (SSL) is an emerging technology that promises performance features and efficiencies well beyond those of traditional artificial lighting, accompanied by potentially massive shifts in (a) the consumption of light, (b) the human productivity and energy use associated with that consumption and (c) the semiconductor chip area inventory and turnover required to support that consumption. In this paper, we provide estimates of the baseline magnitudes of these shifts using simple extrapolations of past behaviour into the future. For past behaviour, we use recent studies of historical and contemporary consumption patterns analysed within a simple energy-economics framework (a Cobb–Douglas production function and profit maximization). For extrapolations into the future, we use recent reviews of believed-achievable long-term performance targets for SSL.We also discuss ways in which the actual magnitudes could differ from the baseline magnitudes of these shifts. These include: changes in human societal demand for light; possible demand for features beyond lumens; and guidelines and regulations aimed at economizing on consumption of light and associated energy.

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