The Rebound Effect

The Rebound Effect occurs when improvements in energy efficiency lead to increased energy consumption, offsetting some of the intended savings. For example, if a household buys a more efficient car, they might drive more often because it costs less to operate. This can result in greater overall fuel use than anticipated. Essentially, while we expect better technology to reduce resource use, people often use it more, diminishing the environmental benefits. Understanding this effect is crucial for creating effective policies aimed at reducing energy consumption and promoting sustainability.