The corporate sustainability reports of home appliance companies universally claim that improved energy efficiency leads to environmental benefit, via lower energy demand. This assumption ignores the rebound effect, which results from price effects and economic growth! This paper, just out in the Journal of Cleaner and Responsible Consumption, shows how persistent and embedded is the assumption that more efficient appliances count as "action" on environmental sustainability: https://lnkd.in/gDJdpsDh We argue that in order to count efficiency as action, companies would need to acknowledge the need for efficiency to be paired with demand control measures or limits on economic growth. And, perhaps not surprisingly, few companies are willing to consider this, even in the context of a sustainability report. Congrats to Purdue University Edwardson School of Industrial Engineering PhD Student Utkuhan Genc for leading this research work and getting it published. And thanks to co-authors Kendrick Hardaway, PhD Candidate in Purdue University Environmental and Ecological Engineering and Dr. Nancy E. Landrum at Munich Business School!
Did you see the new report from the International Chamber of Commerce estimating extreme weather at $2T in cost over the past decade? It's on my reading list for this week. Miss you, grateful for you.
We should chat about this the next time we meet - including analyses under the Energy Policy and Conservation Act (EPCA) of 1975. May be another angle to evaluate this issue!
Kudos to #PurdueEEE program!
Congratulations! 🙌
Congratulations John and team!
Co-Founder, Degrowth Institute
1moIn 1980, Daniel Khazzoom, an economist at UC Berkeley, showed that as the energy efficiency of home appliances improves we also use them more! There is a positive correlation between energy demand and energy efficiency. That paper is here: https://econpapers.repec.org/article/aenjournl/1980v01-04-a02.htm It's a tough reality to face, and 44 years later, we are still ignoring it.