Home appliances' rebound effects estimated by a modified nonlinear model: an empirical study in South Korea

Energy efficiency improvement is an important measure in the age of climate change. However, efficiency improvement also has severe side effects, known as the rebound effect. In this context, to improve the accuracy of estimates of rebound effects, this study attempts to modify the previous nonlinear model by including an income variable. Data from the "Survey of Electricity Consumption Characteristics of Home Appliances" were utilized. The hypothetical targets for efficiency improvement include the following four major home appliances: televisions, refrigerators, washing machines, and air conditioners. The analysis results show a reasonable positive value of the income effect. Therefore, rebound effects become marginally smaller owing to the elimination of this confounding factor. Additionally, rebound effects vary considerably at the level of individual home appliances. In conclusion, policymakers should prudently consider rebound effects to ensure the success of energy efficiency policies.