Rebound effect and the Jevons Paradox

Abstract

Improvements in resources efficiency and resources conservation are less effective at reducing resources use than predicted by engineering calculations due to socio-economic and behavioral responses taken by individuals, firms, institutions and governments. The mechanisms activated by these responses produce the so-called ‘rebound effect’, that is, the difference between the potential and the actual environmental benefits. When the response leads to an increase of resources use in relation to the initial situation, the effect is known as ‘Jevons’ Paradox’. In this case, efficiency improvements and resources conservation become counterproductive in environmental terms. After more than four decades of research there is consensus on its existence, but not on its size. This effect may have a profound impact on sustainability targets. Energy, climate, and in general, environmental and sustainability policies need to take into account this effect when they are assessed, designed and implemented.