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Rebound Effects and ICT: A Review of the Literature

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Abstract

This paper presents a critical review of the literature on the rebound effects generated by information and communication technologies (ICT). Fol-lowing a discussion of the types of general rebound, including direct, indirect, and economy-wide, the literature on ICT-related rebound effects is critically assessed. The chapter suggests ways of overcoming rebound and lays out promising avenues of research to better understand and tackle rebound effects in ICT.

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... Rebound effects have been discussed in various disciplines, e.g., psychology, but in the information and communication technology (ICT) sector this topic is still insufficiently investigated [4, 5]. Moore's law constitutes a commonly referenced example of rebound effects in the ICT field. ...
... For example, Walnum and Andrae (2016) estimate that rebound effects possibly offset energy savings at the macro-level due to the increased amount of data transferred [8]. In the field of ICT, potential savings do not only result from energy efficiency improvements, but also from organizational resources, such as workforce [4]. Therefore, we expand the focus from a narrow energy saving perspective to efficiency improvements of general organizational resources in the context of CC. ...
... This in turn would exhaust the expected savings, which consequently remain unrealized. To avoid possible rebound effects that would absorb the resource-saving impact of CC, a basic understanding must be established [4]. With this in view, we conducted a systematic literature review focusing on the definition of rebound effects. ...
Conference Paper
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Rebound effects have been discussed in various disciplines. In the information and communication technology sector, this topic is still insufficiently studied. Basically, a rebound effect is a feedback mechanism, as a result of which savings from efficiency improvements are not or only partially realized. Due to the potential of cloud computing for efficiency improvements, not only in terms of energy efficiency, but also in terms of organizational resources in general, we describe rebound effects in this context by means of a systematic literature review and a case study. Our results provide a framework to categorize and identify potential rebound effects in cloud computing. The understanding of rebound effects and their influence on the various organizational resources (e.g., server hardware, human resources or IT know-how), is important for managers to sustainably decide for or against the adoption, integration and roll out of cloud computing services.
... HyperVote needs to be considered as an agile and cost-effective solution to run a reliable and ubiquitous e-voting service. In order to evaluate the benefit of the proposed approach, we identify the following criteria derived by [39]: b) Rebound effect (RE) [40]: the increased efficiency in performing the voting service creates an additional demand for new services. It is a proxy indicator of the achieved efficiency. ...
... technology obsolescence). The possibility to have results in a cost-effective, trusted and verifiable/auditable way triggers the socalled rebound effect [40] in HyperVote that can be expressed in a request of even more configuration levels. Rebound effect is also present in blockchain-based voting system and in simple e-Vote service because of the use of technology. ...
Chapter
This article aims at introducing a new process-centric, trusted, configurable and multipurpose electronic voting service based on the blockchain infrastructure. The objective is to design an e-voting service using blockchain able to automatically translate service configuration defined by the end-user into a cloud-based deployable bundle, automating business logic definition, blockchain configuration, and cloud service provider selection. The architecture includes process mining by design in order to optimize process performance and configuration. The article depicts all the components of the architecture and discusses the impact of the proposed solution.
... 1) Nonregression Property: The validity of the model developed should not be affected by the addition of new elements (e.g., a function, a KPI to be added to the assessment model). 2) Rebound Effect [58]: The increased efficiency in performing resilience assessment creates an additional demand of new assessments. It is a proxy indicator of the achieved efficiency. ...
... The Q-FRAM assessment produces a picture of the status of the system variability at time t that can be efficiently re-assessed from low (periodic) to high (close to real time) frequency simply increasing the sampling rate and the level of automation. In fact, the possibility to have results in a cost-effective, fast-forward and accurate way triggers the so-called rebound effect [58] that is expressed in an even more complex or higher rate assessment requests. Instead, for the Tier 3 methods, such a rebound effect is difficult to trigger because of the complexly, the costs, and the purpose of the approaches that are usually focused on single aspect/component of a system. ...
Article
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Due to the continuous increment in complexity of the socio-technical systems, decision makers call for new methods which are able to support timely as well as accurate decision-making related to resilience management. The current methods tend to be polarized on: efficiency-thoroughness forcing decision makers in making decisions on the base of resource availability instead of the problem to be solved. This paper presents a new fast-forward, cost-effective, and thorough enough framework to quantify resilience of a complex socio-technical system. The approach extends the functional resonance analysis method (FRAM) with a numerical method for the quantification of the analysis (Q-FRAM). In particular, it has been extended and operationalized the qualitative concepts of functional variability and dumping capacities into a method in which key performance indicators are derived from the model and aggregated into four indicators representing the FRAM resilience cornerstones (antic-ipate, respond, monitor, learn) through a bottom-up hierarchical approach. Finally, the four indicators are composed in a unique system resilience index that expresses the total variability present in the system at instant t. A numerical example of the use of the framework is provided together with a validation based on a comparison of the proposed approach with the current landscape. Index Terms-Functional resonance analysis method (FRAM), resilience quantification, socio-technical systems, system resilience index (SRI), variability damping capacity.
... (See for example [14] for a current literature review.) The importance of rebounds effects in the ICT sector is under investigated [19].Within the existing literature that is focusing on ICT and empirical analysis of rebound effects several studies have dealt with direct rebound effects of decreased search costs due to e-commerce (e.g. [20], [21]) and [10] and [22] used system thinking and modelling instruments to include direct rebound in a study of effects of ICT on environmental sustainability. ...
... Some of this potential may however be offset by different types of rebound and other indirect effects [22]. There are a number of different types of rebound and other indirect effects that can be relevant [35], [36] also for the ICT sector [9], [19]. Some of them may lead to positive environmental impacts; others may lead to negative impacts. ...
... Several authors argue that the ICT sector is particularly prone to high rebound effects or even backfire (Coroama and Mattern, 2019;Galvin, 2015;Gossart, 2015;Hilty and Aebischer, 2015;Santarius, 2015;Walnum and Andrae, 2016). For instance, despite the improved availability of video conferencing systems, the number of international scientific conferences is increasing (Coroama et al., 2012). ...
Article
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This article investigates the effect of digitalization on energy consumption. Using an analytical model, we investigate four effects: (1) direct effects from the production, usage and disposal of information and communication technologies (ICT), (2) energy efficiency increases from digitalization, (3) economic growth from increases in labor and energy productivities and (4) sectoral change/tertiarization from the rise of ICT services. The analysis combines empirical and theoretical findings from debates on decoupling energy consumption from economic growth and from debates on green IT and ICT for sustainability. Our main results: Effects 1 and 3 tend to increase energy consumption. Effects 2 and 4 tend to decrease it. Furthermore, our analysis suggests that the two increasing effects prevail so that, overall, digitalization increases energy consumption. These results can be explained by four insights from ecological economics: (a) physical capital and energy are complements in the ICT sector, (b) increases in energy efficiency lead to rebound effects, (c) ICT cannot solve the difficulty of decoupling economic growth from exergy, (d) ICT services are relatively energy intensive and come on top of former production. In future, digitalization can only boost sustainability when it fosters effects 2 and 4 without promoting effects 1 and 3.
... • b) Rebound effect [33]: the increased efficiency in managing technology complexity, business processes and trust creates an additional demand of new features and processes that can be managed at business logic (chaincode). It can be considered a proxy indicator of the achieved efficiency. ...
Article
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A stable reference of Internet resources is crucial not only to identify a resource in a trustworthy and certified way but also to guarantee continuous access to it over time. The current practice in scientific publication as the use of a Persistent Identifier (PID) like a DOI or Handle, is becoming attractive also for the datasets. In fact, in the era of Big Data, the aspects of replicability and verification of the scientific result are paramount. In this paper we verify the functional feasibility of permissioned blockchain technology as a tool to implement a Trustworthy Persistent Identifier (T-PID) system for datasets in the scientific domain.
... Trotz einer inzwischen wachsenden Literatur zum Rebound-Effekt (siehe Santarius 2015) liegen derzeit erst wenige auf Informations-und Kommunikationstechniken (IKT) bezogene Rebound-Studien vor (z. B. Gossart 2015). Weitere nicht Reboundspezifische Studien, beispielsweise mehrere Beiträge in Hilty und Aebischer (2015), gelangen zu dem Ergebnis, dass technischer Fortschritt bei Informationstechnologien zu einem absoluten Anstieg des Energie-und Stromverbrauchs führen wird. ...
Article
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Die Digitalisierung der Wirtschaft ist in vollem Gange. Doch das Potenzial dieses Prozesses für eine sozial-ökologische Gesellschaftstransformation ist noch unterbeleuchtet. Drei Fragen bringen Licht in das Dunkel.
... We did not search for such use cases to keep our study comparable with the existing studies and because it would be difficult to quantify such induction potentials (as the counterpart of abatement potentials).-Rebound effects are known to play an important role in ICT applications ( Gossart, 2015, Hilty, 2008a). We did include rebound effects in our calculations, however, they are subject to high uncertainty. ...
Technical Report
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Information and Communication Technology (ICT) is an important enabler for a low-carbon economy in Switzerland. ICT has the potential to avoid up to 3.37 times more greenhouse gas (GHG) emissions than the amount of emissions caused by the production, operation and disposal of ICT devices and infrastructures used in Switzerland in 2025. In absolute terms, ICT will enable the Swiss economy to save up to 6.99 Mt CO2-equivalents (CO2e) per year, with an own carbon footprint of 2.08 Mt CO2e per year. This opportunity for the ICT sector to contribute to climate protection, however, can only be realized under optimistic assumptions. In particular, it is necessary that the existing technological and economic potentials are systematically exploited by taking ambitious and targeted actions. Such actions can be especially effective in the transportation, building and energy sectors, which have the highest potential for ICT-enabled (“smart”) solutions to reduce GHG emissions. At the same time, the carbon footprint of the ICT sector itself must be reduced by 17%, which is technologically and economically feasible due to efficiency gains.
... Sometimes energy efficiency instead lead to rebound effects, such as increased use of the product in question or spending saved money on other things with equal or bigger environmental impact [61]. In that case, the investments in ICT for improving efficiency in energy consumption or labour productivity may mean an absorption of gain, with the investments failing to reach their goals [23]. However, indirect and second order effects are often hard to measure, especially when they are long-term, far-reaching and systemic [4,61]. . ...
Conference Paper
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The ongoing and escalating urbanisation has resulted in a situation where a majority of people worldwide live in cities. Cities stand for a substantial part of the world GDP and are often lifted as possible drivers of sustainable development. However, the city has limitations and vulnerabilities. Cities depend on resources flowing into the city and increasing populations strain their land use. Climate change threatens cities with sea-level rise, heat waves and extreme weather events. Transforming cities into Smart Sustainable Cities by incorporation of Information and Communication Technologies (ICTs) is becoming a recurring proposed solution to these limitations and challenges. The two main areas where ICT are envisioned to function for this are i) as part of the city's infrastructure for monitoring, efficiency and automatization of processes, and ii) as an enabler for sharing of both information and goods among citizens, expectedly leading to more sustainable urban lifestyles. However, there are several limits to the realisation of the Smart Sustainable City. Manufacturing, implementation and maintenance of its digital infrastructure hold environmental risks and require human and natural resources. Furthermore, there are issues of increased vulnerability of the city due to increased complexity. Already now, the (global) flows that the city depends upon to thrive, are to a large and increasing extent possible due to - and dependent on - ICTs working without disturbances. Considering the fragility of these systems, both physical and virtual, is the Smart Sustainable City a desirable or even feasible path? We suggest that while ICT may be useful for making cities more sustainable, we need to be heedful so as not to make the city even more vulnerable in the process. We suggest that we should make sure that the ICT systems simply assist the cities, while maintaining analogue backup in case the ICT shuts down; that we should build more resilient ICT systems with higher backward compatibility; and that we should acknowledge increasing complexity as a problem and strive to counteract it.
... Rebound effect is an " umbrella term for a variety of economic responses to improved energy efficiency and 'energy-saving' behavioral change " [16]. Rebound effects can be categorized as follows [17], [18] (See [19] for a brief history of rebound analysis): ...
Chapter
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Processes leading to an increase of demand for a resource as a consequence of increasing the efficiency of using this resource in production or consumption are known as (direct) rebound effects. Rebound effects at micro and macro levels tend to offset the reduction in resource consumption enabled by progress in efficiency. Systems thinking and modeling instruments such as causal loop diagrams and System Dynamics can be used to conceptualize the structure of this complex phenomenon and also to communicate model-based insights. In passenger transport, the rebound effect can be invoked by increased cost efficiency (direct economic rebound) and/or increase in speed (time rebound). In this paper we review and compare two existing models on passenger transport— including a model on the role of information and communication technology— with regard to the feedback loops used to conceptualize rebound effects.
... One may ask, why our criteria are then sticking on efficiency properties to label a sustainable website or rather software. As others found and discussed before us, efficiency gains are necessary but not sufficient to achieve sustainability goals [17, 19]. The effects discussed above are also known as rebound effects. ...
Conference Paper
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The awareness for software as an important player regarding the energy consumption caused by ICT steadily increased in the past years. The impact of software on the energy consumption is also more and more accepted by the research community under the umbrella of sustainability in general. Nevertheless, the end user is still only slightly or not addressed in the research activities regarding the whole energy consumption of software over its complete lifecycle. Also other stakeholders, e.g. administrators, designers, developers etc., are not in the focus of creating awareness for the aforementioned topics. In this contribution, we therefore focus on ideas, approaches, and challenges in developing a general-purpose labelling process for green and sustainable software products and websites. At first we provide a literature roundup, followed by the elaboration of requirements for the creation of a sustainability label for software products in general based on already existing and new approaches. On a first attempt, we furthermore concentrate on a labelling process for sustainable as well as green websites and sum up with a discussion followed by an outlook on our future work.
... 2. The energy and material resources spent for computation by society in total have nevertheless been increasing. This is an example of what economists call the " rebound effect " or the " Jevons paradox " : Higher efficiency (useful output per input) does usually not lead to the expected savings on the input factor because the demand for output is stimulated by the increase in efficiency [9,10,11]. Mobile devices, however, have triggered a culture of energy sufficiency in hardware and software development because energy is limited by a combination of battery constraints (energy density of the battery, acceptable weight of the battery, required battery life). The performance of LIMITS'15, June 15-16, 2015, Irvine, California, USA. ...
Article
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Computing is an activity that is based on natural resources like any other human activity. Technological progress has made it possible to perform more and more computations with less material and energy input. This paper looks at this development through the lens of the three concepts of efficiency, sufficiency, and self-sufficiency, asking the question of whether it could lead to a state of self-sufficiency. This vision, which seems attainable for the activity of computing, is then taken both as a model and as an enabling element for a transition towards a sustainable circular economy based on relative regional self-sufficiency.
... @BULLET Maranghino et al. [29] introduce an information system supporting organizationinternal cap-and-trade schemes for CO 2 emissions permits and other scarce re- sources. @BULLET Gossart [30] provides a review of the literature on rebound effects counteracting ICT-induced progress in energy efficiency. ...
Chapter
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This chapter provides an overview of energy demand issues in the field of ICT with a focus on the history of measuring, modelling and regulating ICT electricity consumption and the resulting methodological challenges. While the energy efficiency of ICT hardware has been dramatically improving and will continue to improve for some decades, the overall energy used for ICT is still increasing. The growing demand for ICT devices and services outpaces the efficiency gains of individual devices. Worldwide per capita ICT electricity consumption exceeded 100 kWh/year in 2007 (a value which roughly doubles if entertainment equipment is included) and is further increasing. Methodological challenges include issues of data collection and modelling ICT devices and services , assessing the entire life cycle of ICT devices and infrastructures, accounting for embedded ICT, and assessing the effect of software on ICT energy consumption .
... If 30% of business trips worldwide were replaced by teleconferencing, it would lead to an estimated reduction of 500 Mt CO 2 e [30] – roughly 1% of global emissions. These macro-level estimates usually assume that a 1:1 substitution takes place, i.e., they do not take into account rebound effects that may (partly) compensate for the substitution effect, because people will spend the time or money saved on trips either for additional trips or for other activities with relevant environmental impacts (see also Gossart [38], in this volume). ...
Chapter
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While the traditional roles of the computer as a machine for scientific calculations, text editing, and graphic design are still significant, computers are increasingly perceived as means of accessing information and interacting with other people – i.e., as electronic media. The aim of this chapter is to analyze digital electronic media and their effects on environmental sustainability. Two fields of application are addressed: electronic media that may replace or augment traditional print media such as newspapers or magazines, and videoconferencing as a potential substitute for traveling to a face-to-face meeting or conference. In both cases, the environmental costs of the electronic media are compared to those of their conventional counterparts. The examples show that electronic media can represent an energy-efficient alternative to traditional activities such as long-distance travel. But they can also be added on top of existing activities instead of replacing them. In such cases, a net increase in the environmental impact results. The availability of small, energy-efficient devices being used as electronic media does not guarantee dematerialization. The overall resource use and emissions throughout the life cycle of the media product systems and, more importantly, at the macro level of total global production and consumption need to be considered. To achieve the dematerialization potential of new electronic media solutions, their efficiency needs to be combined with sufficiency; thus additional measures are necessary to turn the dematerialization potential of electronic media into environmental relief.
... The Life Cycle Assessment (LCA) method was applied to examine the ecological implications of shifts in the hardware used for private computer work. The aim of this LCA study was to evaluate whether ecological savings due to technical developments (a shift from desktop computers to mobile devices such as laptop or tablet computers) are compensated or overcompensated by consumer behavior (e.g., more devices per person and/or longer daily use of such devices), i.e., if the usage patterns of modern ICT equipment result in a rebound effect (more about term rebound e.g. in [4]). This comparison was made from different perspectives in order to capture the broad diversity in using such devices. ...
Chapter
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Sales statistics of computing devices show that users are not replac-ing units one by one, but rather adding additional devices to their hardware portfolios. This chapter describes the outcomes of a first attempt to quantify the ecological implications of changes in the use of ICT hardware for computing services by using LCA and applying three different perspectives ranging from individual devices to global sales of desktop, laptop, and tablet computers. In particular, it addresses the question of which effect actually predominates: the increase in efficiency induced by the emergence of new technologies or the growing energy consumption due to an increased number of devices combined with a higher utilization rate by individual users. The comparison shows a clear reduction of the environmental impact per hour of active use; and the smaller the device, the smaller the impact due to the ac-tive use of the device. However, when the evolution in the use of these kinds of devices is taken into account as well, the picture changes. The calculations show that the higher efficiency of individual devices is fully compensated by the production efforts for all additional devices in use, without any increased use time. If increased use intensity is assumed as well, a clear increase of the overall impact per day can be observed.
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As we reach the limits of our current technologies and the number of connected devices grows, scientists put more efforts to estimate and reduce the ecological damage of the Internet of Things. Unfortunately, recent literature related to Life Cycle Assessment and eco design of IoT systems suffers from a major inconvenience so far: it does not put sensor data in the focus of attention. This paper aims to point out explicitly the essential role of this aspect for modeling reference flows, and demonstrate its relevance for appropriate environmental assessment and practical eco design. Also, it aims to illustrate that such modeling process must happen in a comprehensive way. For this, our work relies on a case study addressing smart metering, and we proceed as follows: based on available documentation and inspired by certain aspects of different technologies, we deduce the maximal capacities of key electronic components and construct an unfavorable data flow scenario, to get a rough idea of the reference flow and the long-term impact of our system during its use phase. Results from this procedure are later contrasted with results obtained from a packet traffic analysis, in which local and internet data flow are examined carefully. At the end, we verify the importance of sensor data theoretically and empirically, and we conclude that the reference flow and the impact contributors of a system could be affected not only by the local data transit but also by the complex interactions between edge devices and cloud resources. All our findings are discussed to nourish the state-of-the-art around the environmental impact of using full IoT systems and their sustainable design.
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The induction of demand by increasing the efficiency of a production or consumption process is known as the rebound effect. Feedback loops in System Dynamics can be used to conceptualize the structure of this complex phenomenon and also for communicating model-based insights. In passenger transport, the rebound effect can be induced through increased cost efficiency (direct economic rebound) and/or increase in speed (time rebound). In this paper we review and compare two models on environmental effects of passenger transport—including a model on the role of information and communication technology. We highlight the feedback mechanisms used to deal with the rebound effect (price, efficiency, and time rebound).
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Abstract We develop an econometric model to estimate the impact of Electronic Vehicle Management Systems (EVMS) on the load factor (LF) of heavy trucks. This technology is supposed to improve capacity utilization. The model is estimated on the Quebec subsample of the 1999 National Roadside Survey. The LF is explained as a function of truck, trip, and carrier characteristics. We show that the use of EVMS results in an increase of 16 percentage points of LF on backhaul trips. However, we also find that there is a rebound effect on fronthaul movements, with a reduction of LF by about 7.6 percentage points. Nous estimons un modèle économétrique pour évaluer l'impact des systèmes de gestion électronique des véhicules (SGEV) sur le taux de chargement (TC) des camions lourds. Cette technologie est censée améliorer l'utilisation de la capacité. Le modèle est estimé sur le sous-échantillon québécois des données de l'enquête nationale routière en bord de route de 1999. Le TC est expliqué en fonction des caractéristiques du camion, du voyage et de l'entreprise de transport. Nous montrons que l'utilisation de SGEV accroit le TC sur le retour d'environ 16 points de pourcentage. Par contre, nous trouvons également un effet rebond sur l'aller avec une réduction de TC d'environ 7.6 points de pourcentage.
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In the discussion of energy conservation, a great deal of attention has focused on mandated efficiency standards for cars and energy-using household appliances. (In this article, I will use the term "appliance" in a generic sense to cover household durables). Unfortunately, the estimates of energy savings predicted to result from these mandated standards are derived mechanically.' When mandated standards raise the appliance efficiency by 1 percent, demand is predicted to drop by 1 percent; when they raise efficiency by 2 percent, demand is predicted to drop by 2 percent; and so on. Examples of such results are found in reports by the Department of Energy (1979a, 1980) and by the Staff of the California Energy Commission (1979) on energy demand in California in the coming two decades.
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This paper discusses the relationship of new information and communication technologies (ICTs) and sustainable development. It deconstructs popular myths about a sustainable information society. One myth is that telework has reduced the need to travel and hence environmental pollution. The reality is that teleworkers make up only a small share of the total workforce, telework can generate new social relationships and hence the need for more travelling, work-related travel produces only a small amount of the total carbon dioxide emissions, and that the total distance travelled per employee is constantly rising. Another myth is that information economy is weightless and dematerialized which reduces environmental impacts. The energy and resource intensities of the ICT sector are indeed lower than the one of the total economy. The ICT sector also emits less CO2 than the total economy. But the ICT sector constitutes only a small portion of the total value added and fossil fuel combustion is still the dominant activity of modern industrial economies. Some stakeholders argue that virtual products allow resource, energy, and transport savings. But burning digital music on compact discs and DVDs, printing digital articles and books, etc. results in rebound effects that cause new material and energy impacts, computers have a low life span of 2–3years, reusable and upgradeable computers and computer equipment are hardly used and might not be as profitable as non-reusable ones, computers are consuming much energy. Alternatives such as energy consumption labels on ICTs and green ICTs that consume less energy contradict dominant economic interests. A sustainable information society is a society that makes use of ICTs and knowledge for fostering a good life for all human beings of current and future generations by strengthening biological diversity, technological usability, economic wealth for all, political participation of all, and cultural wisdom. Achieving a sustainable information society costs, it demands a conscious reduction of profits by not investing in the future of capital, but the future of humans, society, and nature.
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This article sketches the problem of indirect energy use effects, also known as rebound, of energy conservation. There is widespread support for energy conservation, especially when it is voluntary, as this seems a cheap way to realize environmental and energy-climate goals. However, this overlooks the phenomenon of rebound. The topic of energy rebound has mainly attracted attention from energy analysts, but has been surprisingly neglected in environmental economics, even though economists generally are concerned with indirect or economy-wide impacts of technical change and policies. This paper presents definitions and interpretations of energy and environmental rebound, as well as four fundamental reasons for the existence of the rebound phenomenon. It further offers the most complete list of rebound pathways or mechanisms available in the literature. In addition, it discusses empirical estimates of rebound and addresses the implications of uncertainties and difficulties in assessing rebound. Suggestions are offered for strategies and public policies to contain rebound. It is advised that rebound evaluation is an essential part of environmental policy and project assessments. As opposed to earlier studies, this paper stresses the relevance of the distinction between energy conservation resulting from autonomous demand changes and from efficiency improvements in technology/equipment. In addition, it argues that rebound is especially relevant for developing countries. KeywordsBackfire-Developing countries-Jevons’ paradox-Rebound mechanisms-Relieving limits-Tradable permits JEL ClassificationsQ43-Q48-Q54-Q55-Q58
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This article contributes to the theoretical and empirical discussions on how it could be possible to transform technical eco-efficiency into reduced environmental impact of consumption. The rebound effect is an important concept in this context. The relevance of consumer behaviour is addressed within three important sectors for the Zero Emissions Techniques and Systems: shopping of paper products, energy use in household and waste management. It is not only important how much the consumers buy, but also what kinds of products they buy and how they use and dispose of them. However, the responsibility for a sustainable development should not entirely be put on the shoulders of the individual consumer.
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Current energy and GHG emissions policies either focus directly on emissions or promote renewable production and the implementation of specific efficiency measures. Meanwhile, the fundamental structure of the energy market based on profits through energy throughput remains largely unchallenged. This policy oversight prevents the transition to an energy economy in which profits are based on energy services delivered at the lowest energy cost: a performance-based energy economy (PBEE). The PBEE applies the combined concepts of the performance economy and energy services to the energy sector. Energy Service Companies (ESCOs) are discussed as an example of PBEE practices. The implications for energy suppliers and consumers as well as the conditions for PBEE diffusion and consequences for technological change are also explored. The expected environmental, social and economic benefits are described. However, absolute consumption and emissions reductions may prove elusive due to the rebound effect. In order to forestall rebound-led increases, complementary policy measures likely to lead to absolute reductions are required.
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Beginning with William Stanley Jevons in 1865, a number of authors have claimed that economically justified energy-efficiency improvements will increase rather than reduce energy consumption. ‘Jevons Paradox’ is extremely difficult to test empirically, but could have profound implications for energy and climate policy. This paper summarises and critiques the arguments and evidence that have been cited in support of Jevons’ Paradox, focusing in particular on the work of Len Brookes and Harry Saunders. It identifies some empirical and theoretical weaknesses in these arguments, highlights the questions they raise for economic orthodoxy and points to some interesting parallels between these arguments and those used by the ‘biophysical’ school of ecological economics. While the evidence in favour of ‘Jevons Paradox’ is far from conclusive, it does suggest that economy-wide rebound effects are larger than is conventionally assumed and that energy plays a more important role in driving productivity improvements and economic growth than is conventionally assumed.
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The rebound effect results in part from an increased consumption of energy services following an improvement in the technical efficiency of delivering those services. This increased consumption offsets the energy savings that may otherwise be achieved. If the rebound effect is sufficiently large it may undermine the rationale for policy measures to encourage energy efficiency.The nature and magnitude of the rebound effect is the focus of long-running dispute with energy economics. This paper brings together previous theoretical work to provide a rigorous definition of the rebound effect, to clarify key conceptual issues and to highlight the potential consequences of various assumptions for empirical estimates of the effect. The focus is on the direct rebound effect for a single energy service — indirect and economy-wide rebound effects are not discussed.Beginning with Khazzoom's original definition of the rebound effect, we expose the limitations of three simplifying assumptions on which this definition is based. First, we argue that capital costs form an important part of the total cost of providing energy services and that empirical studies that estimate rebound effects from variations in energy prices are prone to bias. Second, we argue that energy efficiency should be treated as an endogenous variable and that empirical estimates of the rebound effect may need to apply a simultaneous equation model to capture the joint determination of key variables. Third, we explore the implications of the opportunity costs of time in the production of energy services and highlight the consequences for energy use of improved ‘time efficiency’, the influence of time costs on the rebound effect and the existence of a parallel rebound effect with respect to time. Each of these considerations serves to highlight the difficulties in obtaining reliable estimates of the rebound effect and the different factors that need to be controlled for. We discuss the implications of these findings for econometric studies and argue that several existing studies may overestimate the magnitude of the effect.
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This paper gives rigorous definitions of the rebound effect, not only in the well described single commodity case (Khazzoom, 1980. The Energy Journal 1(4), 21–40.), but also for a multiple commodity case. It is shown that the familiar laws for the single case do not hold for the multiple case. The paper describes the state of the art of empirical estimation of the rebound effect, with special focus on the estimates done for the Netherlands. We conclude that according to every definition, empirical evidence shows that the RE is probably small: between 0 and 15%.
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The authors investigate the effects of information and communications technology (ICT) investment, electricity price, and oil price on the consumption of electricity in South Korea's industries using a logistic growth model. The concept electricity intensity is used to explain electricity consumption patterns. An empirical analysis implies that ICT investment in manufacturing industries that normally consume relatively large amounts of electricity promotes input factor substitution away from the labor intensive to the electricity intensive. Moreover, results also suggest that ICT investment in some specific manufacturing sectors is conducive to the reduction of electricity consumption, whereas ICT investment in the service sector and most manufacturing sectors increases electricity consumption. It is concluded that electricity prices critically affect electricity consumption in half of South Korea's industrial sectors, but not in the other half, a finding that differs somewhat from previous research results. Reasons are suggested to explain why the South Korean case is so different. Policymakers may find this study useful, as it answers the question of whether ICT investment can ultimately reduce energy consumption and may aid in planning the capacity of South Korea's national electric power.
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The energy price shocks of the 1970s are usually assumed to have increased the search for new energy saving technologies where eventual gains in energy efficiencies will reduce the real per unit price of energy services and hence, the consumption of energy will rise and partially offset the initial reduction in the usage of energy sources. This is the ‘rebound effect’, which is estimated for the US manufacturing sector using time series data applying the dynamic OLS method (DOLS). When allowing for asymmetric price effects the rebound effect is found to be approximately 24% for the US manufacturing sector.
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In The Coal Question William Stanley Jevons [Jevons, W.S., 1865/1965. The Coal Question: an Inquiry Concerning the Progress of the Nation, and the Probable Exhaustion of our Coal-mines. 3rd edition 1905, Ed. A.W. Flux. Augustus M. Kelley, New York.] maintained that technological efficiency gains—specifically the more “economical” use of coal in engines doing mechanical work—actually increased the overall consumption of coal, iron, and other resources, rather than “saving” them, as many claimed. Twentieth-century economic growth theory also sees technological change as the main cause of increased production and consumption. In contrast, some ecologically-oriented economists and practically all governments, green political parties and NGOs believe that efficiency gains lower consumption and negative environmental impact. Others doubt this ‘efficiency strategy’ towards sustainability, holding that efficiency gains ‘rebound’ or even ‘backfire’ in pursuing this goal, causing higher production and consumption. Because many environmental problems demand rapid and clear policy recommendations, this issue deserves high priority in ecological economics. If Jevons is right, efficiency policies are counter-productive, and business-as-usual efficiency gains must be compensated for with physical caps like quotas or rationing.
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This paper challenges the view that improving the efficiency of energy use will lead to a reduction in national energy consumption, and hence is an effective policy for reducing national CO2 emissions. It argues that improving energy efficiency lowers the implicit price of energy and hence make its use more affordable, thus leading to greater use—an effect termed the ‘rebound’ or ‘takeback’ effect. The paper presents the views of economists, as well as green critics of ‘the gospel of efficiency’. The paper argues that a more effective CO2 policy is to concentrate on shifting to non-fossil fuels, like renewables, subsidized through a carbon tax. Ultimately what is needed, to limit energy consumption, is energy sufficiency (or conservation) rather than energy efficiency.
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Designing privacy into systems at the beginning of the development process necessitates the effective translation of privacy principles, models, and mechanisms into system requirements.
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In this paper, we develop an econometric model to estimate the impacts of Electronic Vehicle Management Systems (EVMS) on the load factor (LF) of heavy trucks using data at the operational level. This technology is supposed to improve capacity utilization by reducing coordination costs between demand and supply. The model is estimated on a subsample of the 1999 National Roadside Survey, covering heavy trucks travelling in the province of Quebec. The LF is explained as a function of truck, trip and carrier characteristics. We show that the use of EVMS results in a 16 percentage points increase of LF on backhaul trips. However, we also find that the LF of equipped trucks is reduced by about 7.6 percentage points on fronthaul movements. This last effect could be explained by a rebound effect: higher expected LF on the returns lead carriers to accept shipments with lower fronthaul LF. Overall, we find that this technology has increased the tonne-kilometers transported of equipped trucks by 6.3% and their fuel efficiency by 5%.