Energy Efficiency and Rebound Effect: Does Energy Efficiency Save Energy?

The aim of this study is to examine the theoric and empirical literature about “rebound effect”. This study summarizes energy efficiency policy and programs in general and in Turkey. Also it gives defination of the “rebound effect” concept. The rebound effect is related to consumer’s tendency to consume more energy due to economic benefit from efficiency improvement. The ‘rebound effect’ is the focus of a long-running dispute of energy economics but it is very new concept in the most developing countries. In literature according to some economist gains in energy efficiency will also 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. However for others size of the rebound effect is too small to take attention. The empirical literature shows that the size of rebound effect can change from country to country and sector to sector.