Estimating the economy-wide rebound effect using empirically identified structural vector autoregressions

The size of the economy-wide rebound effect is crucial for estimating contribution that energy efficiency improvements can make to reducing greenhouse gas emissions and understanding drivers use. Existing estimates, which vary widely, are based on computable general equilibrium models or partial econometric estimates. Using a structural vector autoregressive (SVAR) model, we identify dynamic causal impact shocks, including an shock. identification method independent component analysis. In this manner, able estimate with minimum priori assumptions. We apply SVAR U.S. monthly quarterly data, finding after four years around 100%, implies in long run no saved.