Regional rebound effects of energy efficiency improvements in a spatial general equilibrium framework

We study the impact of energy efficiency improvements and associated rebound effects on regional economies in the European Union. We use a spatial dynamic computable general equilibrium model calibrated for 235 regions and 11 sectors. Our results suggest that the estimation of the rebound effect differs when using multi-regional models compared to single-region or country models, due to the role of competitiveness effects. The heterogeneous results we obtain allow us to reconcile two opposing findings in the literature on the relationship between short-run and long-run rebound effects. Targeting energy efficiency improvements exclusively to non-energy sectors leads to smaller rebound effects. Finally, we examine the role of regional pre-shock conditions in determining the variability of rebound effects across regions, such as trade openness and energy intensity. The latter explains about 65% of the variability in regional rebound effects, while pre-existing trade relations contribute up to 20%.

CHRISTOU Tryfonas;  LECCA Patrizio;  SALOTTI Simone; 

2025-07-02

ELSEVIER

JRC140178

1873-6181 (online),   

https://www.sciencedirect.com/science/article/pii/S0140988325004724,    https://publications.jrc.ec.europa.eu/repository/handle/JRC140178,   

10.1016/j.eneco.2025.108645 (online),