Energy efficiency in general equilibrium with input–output linkages

Industrial activity periodically experiences breakthrough innovations in energy efficiency, but the estimated impacts of these on aggregate use are highly varied. We develop a general equilibrium model to show this variation is part determined by structure economy’s input–output network. Our results industrial efficiency improvements affect through adjustments factor and commodity markets, process structural transformation that alters way used produced economy. describe impact processes using new centrality concepts measure extent which an industry implicitly produces or consumes resources. In calibrated simulation, we find explains between 38 92% rebound effect, suggests critical determinant effects efficiency.