Heterogeneous Rebound Effects in Individual Mobility: Evidence from German Households

This article investigates heterogeneity in the direct rebound effect of individual mobility using discrete-continuous models. After deriving formulae for the marginal effects obtained from these selection correction approaches, we estimate a joint model of automobile ownership and distance driven to quantify the rebound effect — the behaviourally induced increase in driving that results from higher fuel economy. Our findings suggest that 30–80 per cent of the emissions reduction from an efficiency improvement is lost to increased driving. The magnitude of this range indicates that estimates of the climate impacts from technological change should take the rebound effect into account.