Rebound effect (conservation)

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In energy conservation and energy economics, the rebound effect (or take-back effect) is the reduction in expected gains from new technologies that increase the efficiency of resource use, because of behavioral or other systemic responses. These responses diminish the beneficial effects of the new technology or other measures taken. A definition of the rebound effect is provided by Thiesen et al. (2008) [1] as, “the rebound effect deals with the fact that improvements in efficiency often lead to cost reductions that provide the possibility to buy more of the improved product or other products or services.”  A classic example from this perspective is a driver who substitutes a vehicle with a fuel-efficient version, only to reap the benefits of its lower operating expenses to commute longer and more frequently." [2]

Contents

A body of scientific literature argues that improvements in technological efficiency and efficiency improvements in general have induced increases in consumption. [3] [4] [5] Generally, economists and researchers seem to agree that there exists a rebound effect, but they disagree about its volume and importance. [6]

While the literature on the rebound effect generally focuses on the effect of technological improvements on energy consumption, the theory can also be applied to the use of any natural resource or other input, such as labor. The rebound effect is generally expressed as a ratio of the lost benefit compared to the expected environmental benefit when holding consumption constant. [7]

For instance, if a 5% improvement in vehicle fuel efficiency results in only a 2% drop in fuel use, there is a 60% rebound effect (since (5-2)5 = 60%). [8] The 'missing' 3% might have been consumed by driving faster or further than before.

The existence of the rebound effect is uncontroversial. However, debate continues as to the magnitude and impact of the effect in real world situations. [9] Depending on the magnitude of the rebound effect, there are five different rebound effect (RE) types: [10]

  1. Super conservation (RE < 0): the actual resource savings are higher than expected savings – the rebound effect is negative.
  2. Zero rebound (RE = 0): The actual resource savings are equal to expected savings – the rebound effect is zero.
  3. Partial rebound (0 < RE < 1): The actual resource savings are less than expected savings – the rebound effect is between 0% and 100%. This is sometimes known as 'take-back', and is the most common result of empirical studies on individual markets.
  4. Full rebound (RE = 1): The actual resource savings are equal to the increase in usage – the rebound effect is at 100%.
  5. Backfire (RE > 1): The actual resource savings are negative because usage increased beyond potential savings – the rebound effect is higher than 100%. This situation is commonly known as the Jevons paradox.

In order to avoid the rebound effect, environmental economists have suggested that any cost savings from efficiency gains be taxed in order to keep the cost of use the same. [11] Furthermore, strategies for increasing efficiency may lead to unsustainable development patterns if they are not complemented by sufficiency-oriented strategies demand reduction measures. [12] [13]

History

The rebound effect was first described by William Stanley Jevons in his 1865 book The Coal Question , where he observed that the invention in Britain of a more efficient steam engine meant that the use of coal became economically viable for many new uses. This ultimately led to increased coal demand and much increased coal consumption, even as the amount of coal required for any particular use fell. According to Jevons, "It is a confusion of ideas to suppose that the economical use of fuel is equivalent to diminished consumption. The very contrary is the truth." [14] When studying the increase in energy consumption due to coal burning, Jevons initially presented the idea of rebound effect in academic literature in 1865. As a result, the notion became known as the 'Jevons paradox.' Subsequent scientific study had not been mainstream until the 1980s; once economists adopted Jevons' theories due to global oil crises and growing global warming fears. [4]

Although the concept of rebound effect was developed from the original paradox theory by Jevons, the contemporary economics have traversed, to expand the scope of what is meant by rebound effects and to provide Jevons Paradox a more concise definition. The concept of rebound effects have taken various iterations in different disciplines and has come to encompass several spheres of challenges and negative externalities. [15] Walnum et al. (2014) [16] carried out a systematic study of rebound effect research and observed the presence of seven viewpoints in which each provides unique interpretations and suppositions on the phenomenon: psychological study, ecological economics, energy economics, ecological economics, socio-technological discipline, evolutionary economics and urban planning. An eighth important position that of industrial ecology was also identified in further studies. [15]

Light pollution over Melbourne, Australia Melbourne (AU), Melbourne City Centre -- 2019 -- 1530-4.jpg
Light pollution over Melbourne, Australia

However, most contemporary authors credit Daniel Khazzoom for the re-emergence of the rebound effect in the research literature. Although Khazzoom did not use the term, he raised the idea that there is a less than one-to-one correlation between gains in energy efficiency and reductions in energy use, because of a change in the 'price content' of energy in the provision of the final consumer product. [17] His study was based on energy efficiency gains in home appliances, but the principle applies throughout the economy. A commonly studied example is that of a more fuel-efficient car. As each kilometre of travel becomes cheaper, there will be an increase in driving speed and/or kilometres driven, as long as the price elasticity of demand for car travel is not zero. Other examples might include the growth in garden lighting after the introduction of energy-saving Light Emitting Diodes [18] or the increasing size of houses driven partly by higher fuel efficiency in home heating technologies. If the rebound effect is larger than 100%, all gains from the increased fuel efficiency would be wiped out by increases in demand (the Jevons paradox).

Khazzoom's thesis was criticized heavily by Michael Grubb [7] and Amory Lovins [19] who stated that there was a connection between energy efficiency improvements in an individual market, and an economy-wide reduction in energy consumption. Developing Khazzoom's idea further, and prompting heated debate in the Energy Policy journal at that time, Len Brookes wrote of the fallacies in the energy-efficiency solution to greenhouse gas emissions. [20] His analysis showed that any economically justified improvements in energy efficiency would in fact stimulate economic growth and increase total energy use. For improvements in energy efficiency to contribute to a reduction in economy-wide energy consumption, the improvement must come at a greater economic cost. Commenting in regard to energy efficiency advocates, he concludes that, "the present high profile of the topic seems to owe more to the current tide of green fervor than to sober consideration of the facts, and the validity and cost of solutions." [20]

Khazzoom-Brookes postulate

In 1992, economist Harry Saunders coined the term "Khazzoom-Brookes postulate" to describe the idea that energy efficiency gains paradoxically result in increases in energy use (the modern day equivalent of the Jevons paradox). He modeled energy efficiency gains using a variety of neoclassical growth models, and showed that the postulate is true over a wide range of assumptions. In the conclusion of his paper, Saunders stated that: [21]

In the absence of efficiency gains, energy use will grow in lock step with economic growth (energy intensity will stay fixed) when energy prices are fixed. … Energy efficiency gains can increase energy consumption by two means: by making energy appear effectively cheaper than other inputs; and by increasing economic growth, which pulls up energy use. … These results, while by no means proving the Khazzoom-Brookes postulate, call for prudent energy analysts and policy makers to pause a long moment before dismissing it.

This work provided a theoretical grounding for empirical studies and played an important role in defining the problem of the rebound effect. It also reinforced an emerging ideological divide between energy economists on the extent of the yet to be named effect. The two tightly held positions are:

Even though many studies have been undertaken in this area, neither position has yet claimed a consensus view in the academic literature. Recent studies have demonstrated that direct rebound effects are significant (about 30% for energy), but that there is not enough information about indirect effects to know whether or how often back-fire occurs. Economists tend to the first position, but most governments, businesses, and environmental groups adhere to the second. Governments and environmental groups often advocate further research into fuel efficiency and radical increases in the efficient use of energy as the primary means for reducing energy use and reducing greenhouse gas emissions (to alleviate the impacts of climate change). However, if the first position more accurately reflects economic reality, current efforts to invent fuel-efficient technologies may not much reduce energy use, and may in fact paradoxically increase oil and coal consumption, and greenhouse gas emissions, over the long run. [9] [22]

Types of effects

The full rebound effect can be distinguished into three different economic reactions to technological changes: [23]

  1. Direct rebound effect: An increase in consumption of a good is caused by the lower cost of use. This is caused by the substitution effect.
  2. Indirect rebound effect: The lower cost of a service enables increased household consumption of other goods and services. For example, the savings from a more efficient cooling system may be put into another luxury good. This is caused by the income effect.
  3. Economy wide effect: The fall in service cost reduces the price of other goods, creates new production possibilities and increases economic growth.

In the example of improved vehicle fuel efficiency, the direct effect would be the increased fuel use from more driving as driving becomes cheaper. The indirect effect would incorporate the increased consumption of other goods enabled by household cost savings from increased fuel efficiency. Since consumption of other goods increases, the embodied fuel used in the production of those goods would increase as well. Finally, the economy-wide effect would include the long-term effect of the increase in vehicle fuel efficiency on production and consumption possibilities throughout the economy, including any effects on economic growth rates.

Direct and indirect effects

Direct and Indirect Effects Efficiencyreboundgraph.png
Direct and Indirect Effects

For cost reducing resource efficiency, distinguishing between direct and indirect effects is shown in Figure 1 below. The horizontal axis shows units of consumption of the targets good (which could be for example clothes washing, and measured in terms of kilograms of clean clothes) with consumption of all other goods and services on the vertical axis. An economical technology change that enables each unit of washing to be produced with less electricity results in a reduction of the price per unit of washing. This shifts the household budget line rightwards. The result is a substitution effect because of the decreased relative price, but also an income effect due to the increased real income. The substitution effect increases consumption of washing from Q1 to QS, and the income effect from QS to Q2. The total increase in consumption of washing from Q1 to Q2 and the resulting increase in electricity consumption is the direct effect. The indirect effect comprises the increase in other consumption, from O1 to O2. The scale of each of these effects depends on the elasticity of demand for each of the goods, and the embodied resource or externality associated with each good. Indirect effects are difficult to measure empirically. [22] In the manufacturing sector, it has been estimated that there is about a 24% rebound effect due to increases in fuel efficiency. [22] A parallel effect will happen for cost saving efficient technologies for producers, where output and substitution effects will occur.

The rebound effect can increase the difficulty of projecting the reduction in greenhouse emissions from an improvement in energy efficiency. [24] Estimation of the scale of direct effects on residential electricity, heating and motor fuel consumption has been common motivation for research of rebound effects. [9] Evaluation and econometric methods are the two approaches generally employed in estimating the size of this effect. Evaluation methods rely on quasi-experimental studies and measure the before and after changes to energy consumption from the implementation of energy efficient technology, while econometric methods utilize elasticity estimates to forecast the likely effects from changes in the effective price of energy services.

Research has found that in developed countries, the direct rebound effect is usually small to moderate, ranging from roughly 5% to 40% in residential space heating and cooling. [24] [25] [26] [27] Some of the direct rebound effect can be attributed to consumers who were previously unable to use a service. [28] However, the rebound effect may be more significant in the context of the undeveloped markets in developing economies. [29] [30]

Indirect effects from conservation

Figure2: change in preferences of a household revealing indirect effects from conservation Conservationreboundgraph.png
Figure2: change in preferences of a household revealing indirect effects from conservation

For conservation measures, indirect effects closely approximate the total economy-wide effect. Conservation measures constitute a change in consumption patterns away from particular targeted goods towards other goods. Figure 2 shows that a change in preference of a household results in a new consumption pattern that has less of the target good (QT to QT'), and more of all other goods (QO to QO'). The resource consumption or externalities embodied in this other consumption is the indirect effect.

Although a persuasive view has prevailed that indirect effects with respect to energy and greenhouse emissions should be very small due to energy directly comprising only a small component of household expenditure, this view is gradually being eroded. [19] [31] Many recent studies based on life-cycle analysis show the energy consumed indirectly by households is often higher than consumed directly through electricity, gas, and motor fuel, and is a growing proportion. [32] [33] [34] This is evident in the results of recent studies that indicate indirect effects from household conservation can range from 10% to 200% depending on the scenario, with higher indirect rebounds from diet changes aiming to reduce food miles. [35]

Economy wide effects

Even if the direct and indirect rebound effects add up to less than 100%, technological improvements that increase efficiency may still result in economy-wide effects that results in increased resource use for the economy as a whole. In particular, this would happen if increased resource efficiency enables an expansion of production in the economy, and an increase in the rate of economic growth. For example, for the case of energy use, more efficient technology is equivalent to a lower price for energy resources. It is well known that changes in energy costs have a large impact on economic growth rates. In the 1970s, sharp increases in petroleum prices led to stagflation (recession and inflation) in the developed countries, whereas in the 1990s lower petroleum prices contributed to higher economic growth. An improvement in energy efficiency has the same effect as lower fuel prices, and leads to faster economic growth. Economists generally believe that especially for the case of energy use, more efficient technologies will lead to increased use, because of this growth effect.

To model the scale of this effect, economists use computational general equilibrium (CGE) models. While CGE methodology is by no means perfect, results indicate that economy-wide rebound effects are likely to be very high, with estimates above 100% being rather common. [9] One simple CGE model has been made available online for use by economists. [36]

Income level variation

Research has shown that the direct rebound effects for energy services is lower at high income levels, due to less price sensitivity. Studies have found that own-price elasticity of gas consumption by UK households was two times greater for households in the lowest income decile when compared to the highest decile. Studies have also observed higher rebounds in low-income houses for improvements in heating technology. [37] [38] Evaluation methods have also been used to assess the scale of rebound effects from efficient heating installations in lower income homes in the United Kingdom. This research found that direct effects are close to 100% in many cases. [39] High income households in developed countries are likely to set the temperature at the optimum comfort level, regardless of the cost – therefore any cost reduction does not result in increased heating, for it was already optimal. But low-income households are more price sensitive, and have made thermal sacrifices due to the cost of heating. [28] In this case, a high direct rebound is likely. This analogy can be extended to most household energy consumption.

Bus stop using solar powered lights Bus Stop with solar powered lights, Billy Grant Field.JPG
Bus stop using solar powered lights

The size of the rebound effect is likely to be higher in developing countries according to macro-level assessments [30] and case studies. One case study was undertaken in rural India to evaluate the impact of an alternative energy scheme. [29] Households were given solar powered lighting in an attempt to reduce the use of kerosene for lighting to zero except for seasons with insufficient sunshine. The scheme was also designed to encourage a future willingness to pay for efficient lighting. The results were surprising, with high direct rebounds between 50 and 80%, and total direct and indirect rebound above 100%. Because the new lighting source was essentially zero cost, operating hours for lighting went up from an average of 2 to 6 per day, with new lighting consisting of a combination of both the no-cost solar lamps and also kerosene lamps. Also, more cooking was undertaken which enabled an increased trade of food with neighboring villages.

Rebounds with respect to time

The individual opportunity of cost is an often overlooked cause of the rebound effect. Just as improved workplace tools result in an increased expectation of productivity, so does the increased availability of time result in an increase in demand for a service. [22] [40] [41] Research articles often examine increasingly convenient and more rapid modes of transportation to determine the rebound effect in energy demand. Because time cost forms a major part of the total cost of commuter transport, rapid modes will reduce real costs, but will also encourage longer commuting distances which will in turn increase energy consumption. [9] [40] While important, it is almost impossible to estimate empirically the scale of such effects due to the subjective nature of the value of time. Time saved can either be used towards additional work or leisure which may have differing degrees of rebound effect. Labor time saved at work due to the increased labour productivity is likely to be spent on further labor time at higher productive rates. For leisure time saving, this may simply encourage people to diversify their leisure interests to fill their generally fixed period of leisure time.

Suggested solutions

In order to ensure that efficiency enhancing technological improvements actually reduce fuel use, the ecological economists Mathis Wackernagel and William Rees have suggested that any cost savings from efficiency gains be "taxed away or otherwise removed from further economic circulation. Preferably they should be captured for reinvestment in natural capital rehabilitation." [11] This can be achieved through, for example, the imposition of a green tax, a cap and trade program, higher fuel taxes or the proposed "restore" approach where part of the savings is directed back to the resource. [42] Policies can also directly address projected yearly consumption of energy rather than device efficiency, especially for systems where the use can be accurately projected, such as street lighting. [43]

Perhaps due to the ongoing discussions and lack of mutual understandings related to importance and influence of rebound effects, it is outlined that policy responses to mitigate risks and address challenges related to rebound effects remain scarce and too little ambitious. Vivanco, Kemp, and van der Voet suggest several strategies: [4] [44]

See also

Notes and references

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  2. Druckman, Angela; Chitnis, Mona; Sorrell, Steve; Jackson, Tim (2011). "Missing carbon reductions? Exploring rebound and backfire effects in UK households". Energy Policy. 39 (6): 3572–3581. doi:10.1016/j.enpol.2011.03.058. S2CID   13863334.
  3. Schaefer, Stephan; Wickert, Christopher (January 2015). "The Efficiency Paradox in Organization and Management Theory". Academy of Management Proceedings. 2015 (1): 10958. doi:10.5465/ambpp.2015.10958abstract. ISSN   0065-0668.
  4. 1 2 3 Font Vivanco, David; Kemp, René; van der Voet, Ester (1 July 2016). "How to deal with the rebound effect? A policy-oriented approach". Energy Policy. 94: 114–125. doi: 10.1016/j.enpol.2016.03.054 . hdl: 1887/87380 . ISSN   0301-4215. S2CID   156576843.
  5. Segovia-Martin, Jose; Creutzig, Felix; Winters, James (18 September 2023). "Efficiency traps beyond the climate crisis: exploration–exploitation trade-offs and rebound effects". Philosophical Transactions of the Royal Society B. 378 (1889). doi:10.1098/rstb.2022.0405.
  6. Gillingham, Kenneth; Kotchen, Matthew J.; Rapson, David S.; Wagner, Gernot (January 2013). "The rebound effect is overplayed". Nature. 493 (7433): 475–476. doi:10.1038/493475a. ISSN   0028-0836. PMID   23344343.
  7. 1 2 Grubb, M.J. (1990). "Energy efficiency and economic fallacies". Energy Policy. 18 (8): 783–785. doi:10.1016/0301-4215(90)90031-x.
  8. Wang, Zhaohua; Han, Bai; Lu, Milin (2016). "Measurement of energy rebound effect in households: Evidence from residential electricity consumption in Beijing, China". Renewable and Sustainable Energy Reviews. 58: 852–861. doi:10.1016/j.rser.2015.12.179.
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  13. Haberl, Helmut; Wiedenhofer, Dominik; Virág, Doris; Kalt, Gerald; Plank, Barbara; Brockway, Paul; Fishman, Tomer; Hausknost, Daniel; Krausmann, Fridolin; Leon-Gruchalski, Bartholomäus (11 June 2020). "A systematic review of the evidence on decoupling of GDP, resource use and GHG emissions, part II: synthesizing the insights". Environmental Research Letters. 15 (6). doi:10.1088/1748-9326/ab842a.
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<span class="mw-page-title-main">Uneconomic growth</span> Economic growth that reflects or creates a decline in the quality of life

Uneconomic growth is economic growth that reflects or creates a decline in the quality of life. The concept is used in human development theory, welfare theory, and ecological economics. It is usually attributed to ecological economist Herman Daly, though other theorists may also be credited for the incipient idea, According to Daly, "uneconomic growth occurs when increases in production come at an expense in resources and well-being that is worth more than the items made." The cost, or decline in well-being, associated with extended economic growth is argued to arise as a result of "the social and environmental sacrifices made necessary by that growing encroachment on the eco-system."

Energy economics is a broad scientific subject area which includes topics related to supply and use of energy in societies. Considering the cost of energy services and associated value gives economic meaning to the efficiency at which energy can be produced. Energy services can be defined as functions that generate and provide energy to the “desired end services or states”. The efficiency of energy services is dependent on the engineered technology used to produce and supply energy. The goal is to minimise energy input required to produce the energy service, such as lighting (lumens), heating (temperature) and fuel. The main sectors considered in energy economics are transportation and building, although it is relevant to a broad scale of human activities, including households and businesses at a microeconomic level and resource management and environmental impacts at a macroeconomic level.

<span class="mw-page-title-main">Energy conservation</span> Reducing energy consumption

Energy conservation is the effort to reduce wasteful energy consumption by using fewer energy services. This can be done by using energy more effectively or changing one's behavior to use less service. Energy conservation can be achieved through efficient energy use, which has some advantages, including a reduction in greenhouse gas emissions and a smaller carbon footprint, as well as cost, water, and energy savings.

<span class="mw-page-title-main">Socioeconomics</span> Social science that studies how economic activity affects and is shaped by social processes

Socioeconomics is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern societies progress, stagnate, or regress because of their local or regional economy, or the global economy.

<span class="mw-page-title-main">Jevons paradox</span> Efficiency leads to increased demand

In economics, the Jevons paradox occurs when technological progress increases the efficiency with which a resource is used, but the falling cost of use induces increases in demand enough that resource use is increased, rather than reduced. Governments typically assume that efficiency gains will lower resource consumption, ignoring the possibility of the paradox arising.

<span class="mw-page-title-main">Steady-state economy</span> Constant capital and population size

A steady-state economy is an economy made up of a constant stock of physical wealth (capital) and a constant population size. In effect, such an economy does not grow in the course of time. The term usually refers to the national economy of a particular country, but it is also applicable to the economic system of a city, a region, or the entire world. Early in the history of economic thought, classical economist Adam Smith of the 18th century developed the concept of a stationary state of an economy: Smith believed that any national economy in the world would sooner or later settle in a final state of stationarity.

<span class="mw-page-title-main">Energy poverty</span> Lack of access to energy services such as electricity and heating

In developing countries and some areas of more developed countries, energy poverty is lack of access to modern energy services in the home. In 2022, 759 million people lacked access to consistent electricity and 2.6 billion people used dangerous and inefficient cooking systems. Their well-being is negatively affected by very low consumption of energy, use of dirty or polluting fuels, and excessive time spent collecting fuel to meet basic needs.

<span class="mw-page-title-main">Efficient energy use</span> Energy efficiency

Efficient energy use, or energy efficiency, is the process of reducing the amount of energy required to provide products and services. There are many technologies and methods available that are more energy efficient than conventional systems. For example, insulating a building allows it to use less heating and cooling energy while still maintaining a comfortable temperature. Another method is to remove energy subsidies that promote high energy consumption and inefficient energy use. Improved energy efficiency in buildings, industrial processes and transportation could reduce the world's energy needs in 2050 by one third.

Economic theory evaluates how taxes are able to provide the government with required amount of the financial resources and what are the impacts of this tax system on overall economic efficiency. If tax efficiency needs to be assessed, tax cost must be taken into account, including administrative costs and excessive tax burden also known as the dead weight loss of taxation (DWL). Direct administrative costs include state administration costs for the organisation of the tax system, for the evidence of taxpayers, tax collection and control. Indirect administrative costs can include time spent filling out tax returns or money spent on paying tax advisors.

In the 1980s, the economists Daniel Khazzoom and Leonard Brookes independently put forward ideas about energy consumption and behavior that argue that increased energy efficiency paradoxically tends to lead to increased energy consumption. In 1992, the US economist Harry Saunders dubbed this hypothesis the Khazzoom–Brookes postulate, and showed that it was true under neo-classical growth theory over a wide range of assumptions. This effect is comparable to Jevons paradox.

<span class="mw-page-title-main">Energy conservation in the United States</span> How power is used and saved by Americans

The United States is the second-largest single consumer of energy in the world. The U.S. Department of Energy categorizes national energy use in four broad sectors: transportation, residential, commercial, and industrial. Energy usage in transportation and residential sectors is largely controlled by individual domestic consumers. Commercial and industrial energy expenditures are determined by businesses entities and other facility managers. National energy policy has a significant effect on energy usage across all four sectors.

The energy efficiency implementation industry pertains to the firms which retrofit or replace inefficient equipment with the goal of reducing energy consumption and GHG emissions. Retrofitting can enhance existing equipment by increasing operational energy efficiency at a lower cost. As a comparison, complete replacement of equipment may be more costly, but can reduce the implementation complexity. The overarching goal of energy efficiency implementation is to save kilowatt hours.

Energy efficiency gap refers to the improvement potential of energy efficiency or the difference between the cost-minimizing level of energy efficiency and the level of energy efficiency actually realized. It has attracted considerable attention among energy policy analysts, because its existence suggests that society has forgone cost-effective investments in energy efficiency, even though they could significantly reduce energy consumption at low cost. This term was first "coined" by Eric Hirst and Marilyn Brown in a paper entitled "Closing the Efficiency Gap: Barriers to the Efficient Use of Energy" in 1990.

Green affordable housing is reasonably priced housing that incorporates sustainable features. The phenomenon has become increasingly common in all over the world as climate change and the cost of housing become alarming issues. For example, the United States adopted state and local policies that favor or require green building practices for publicly owned or funded buildings. Potential benefits of green affordable housing include lower energy cost burden and improved health. One challenge to green affordable housing is the tendency to prioritize short-term costs over long-term benefits, leading to higher upfront cost. The challenge for green housing advocates is to see to the life cycle cost of the building. Many affordable housing projects already find it a challenge to raise capital to finance basic affordable housing. This challenge is compounded by the phenomenon of urban greening and environmental gentrification, which can drive up housing prices and becomes a challenge for green affordable housing. Green affordable housing has taken form in traditionally wooden homes, green homes and most recently with 'upcycling' shipping containers.

<span class="mw-page-title-main">Eco-economic decoupling</span> Economy able to grow without corresponding increases in environmental pressure

In economic and environmental fields, decoupling refers to an economy that would be able to grow without corresponding increases in environmental pressure. In many economies, increasing production (GDP) raises pressure on the environment. An economy that would be able to sustain economic growth while reducing the amount of resources such as water or fossil fuels used and delink environmental deterioration at the same time would be said to be decoupled. Environmental pressure is often measured using emissions of pollutants, and decoupling is often measured by the emission intensity of economic output.

John A. "Skip" Laitner is an American-born economist, author and lecturer. He focuses on developing a more robust technology and behavioral characterization of energy efficiency resources for use in energy and climate economic policy models.

Energy efficiency in agriculture refers to reducing the amount of energy required to provide agricultural products and services. The European Commission has policies related to energy efficiency, including in agriculture. The European Union has established measures to promote energy efficiency, including setting targets for energy savings, and requiring energy audits and management plans for large companies. The AGREE project conducted studies on energy efficiency in different agricultural production systems and proposed measures for improvement. The results of the project were summarized in reports that highlighted the opportunities and drawbacks for energy efficiency in agriculture in different European countries. Improving energy efficiency in agriculture contributes to reducing greenhouse gas emissions.

Green consumption is related to sustainable development or sustainable consumer behaviour. It is a form of consumption that safeguards the environment for the present and for future generations. It ascribes to consumers responsibility or co-responsibility for addressing environmental problems through the adoption of environmentally friendly behaviors, such as the use of organic products, clean and renewable energy, and the choice of goods produced by companies with zero, or almost zero, impact.