Fuel poverty and rebound effect in South Korea: An estimation for home appliances using the modified regression model

Abstract

Since the occurrence of oil shocks in the 1970s, a number of countries have introduced fuel poverty programs. However, rebound effects could be problematic even in these programs. In particular, there are two controversies surrounding rebound effects: the magnitude of rebound effects and the influence of income on these effects. This study attempts to resolve these issues by empirically estimating the rebound effects of individual home appliances for low-income households. Thereafter, it compares the rebound effects for low-income families with those for all-income families. Analyses results suggest that the magnitude of rebound effects highly depends on individual home appliances, and that these effects are usually larger for low-income households. Thus, the differences in rebound effects between all-income and low-income households also depend on individual appliances. Therefore, policy-makers should meticulously consider the rebound effects of individual home appliances when planning energy efficiency programs.