Number: RS20981 Title: Energy Efficiency and the Rebound Effect: Does Increasing Efficiency Decrease Demand? Authors: Frank Gottron, Resources, Science, and Industry Division Abstract: Economic theory suggests that decrease in energy demand and subsequent decrease in cost of using the resource could cause a rebound in demand. When actually measured this rebound effect is generally acknowledged to lower predicted reductions in electricity demand by 10 percent to 40 percent depending on the device that is made more efficient. Pages: 4 Date: Updated July 30, 2001