UKERC Review of Evidence for the Rebound Effect: Technical Report 4: Computable general equilibrium modelling studies: Working Paper

Abstract

First paragraph: The impact of energy efficiency improvements may permeate throughout an economy, leading to a series of adjustments in the production and consumption of different goods and services. These adjustments cannot be adequately captured within a partial equilibrium framework but may be explored through the use of Computable General Equilibrium (CGE) models of the macro-economy. CGE models are widely used in the investigation of energy and climate policy, partly as a consequence of the ready availability of modelling frameworks and associated benchmark data. However, these models have rarely been used to study economy-wide rebound effects, despite their apparent suitability for this purpose.