Effect of Energy Rebound Magnitude on Electricity Conservation in selected African Countries

Abstract

Energy efficiency has especially been touted as potentially viable for scaling down the energy consumption of countries. Nonetheless, economists have questioned the potency of efficiency policies in reducing energy consumption due to the so-called rebound effect. The size of this effect has however been debated and contested, particularly in energy underserved regions of developing countries. This study employs a stochastic frontier model and a Generalize Method of Moment to investigates the magnitude of the rebound effect and examine its effect on electricity conservation in 29 African countries between the period 2010 to 2019. Based on the country grouping adapted in the study, the result suggested an average rebound size of 0.74% and -0.28% for low-income economies and 0.029% and -3.86% for high-income economies within the short and long term respectively. In addition, the result revealed that all the countries with partial and super-conservation rebound effects had an encouraging electricity conservation potential both within the short- and long-term. However, the contrary was true for countries with backfire rebound effects. The study, therefore, recommends the need to reinforce energy efficiency initiatives through efficiency standards and labeling in appliances and construction as well as subsidies on efficient electrical appliances and for energy audits.