Direct Household Rebound Effect for Electricity Consumption in the U.S.: Implications for Energy Conservation Policy

The direct rebound effect is a concept that describes the increase in consumer demand for energy services resulting from improvements in energy efficiency. This paper uses household electricity consumption data in the United States during the period 2006-2010 to generate an estimation of the rebound effect indirectly through price elasticities. It then analyzes the impact of state level appliance standards and building code standards in order to inform energy policy. Findings suggest that energy conservation policymakers should redirect their current efforts to impose more stringent appliance standards toward standards that are not subject to a considerable household rebound effect such as building codes.