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MENTAL MODEL · M3987

Rebound Effect

Rebound Effect
BusinessHigh supportEconomics
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Updated 2026-08-01

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INTRODUCTION

English translation pending.

CORE DEFINITION

The rebound effect describes how savings from greater efficiency are partly or wholly offset by increased use. When a device becomes cheaper to operate, people use it more, buy larger versions, or spend the savings on other energy-intensive goods. William Stanley Jevons documented the extreme case, in which more efficient coal engines raised total coal consumption. The qualifier is the strength of the demand response: rebound ranges from a partial offset to backfire, where consumption rises above the original level.

SCAFFOLDING EFFECT

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- Efficiency caution: ask what people will do with the money and time they save. - Demand side: model how usage changes instead of only the engineering gain. - Net accounting: compare total consumption before and after adoption, not nominal efficiency.

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Efficiency lowers the effective price of a service such as lighting, travel or computation. A lower price raises the quantity demanded, so part of the technical saving is consumed by additional use. When the price effect is strong enough, the new demand outweighs the saving and total consumption rises, which is why engineering efficiency and realised savings diverge.

MINIMUM ACTION

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/Rebound_effectZH · Explicit
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