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When does eco-efficiency rebound or backfire? An analytical model

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When Does Eco-Efficiency Rebound or Backfire An Analytical Model.pdf (1.34 MB)

Date

2021-04-16

Authors

Chenavaz, Régis Y.
Dimitrov, Stanko
Figge, Frank

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier

Abstract

It is known that an eco-efficiency strategy, which saves resources in the production process, may be offset by a rebound effect; it may even backfire. Less known are the exact conditions under which eco-efficiency rebounds or backfires. This article fills the gap by providing an analytical model of the rebound and backfire effects. We propose an optimal control framework of dynamic pricing and eco-efficiency investment, for which eco-efficiency reduces the unit production cost and boosts the demand of environmentally concerned consumers. Results, which hold with a general demand formulation, examine the analytic conditions for the rebound and backfire effects. They also highlight the possibility of a reverse rebound effect. Such results pave the way to sounder sustainability strategies.

Description

The final publication is available at Elsevier via http://dx.doi.org/10.1016/j.ejor.2020.08.039. © 2021.This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

pricing, sustainability, optimal control, rebound effect, eco-efficiency

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Citation

URI

https://doi.org/10.1016/j.ejor.2020.08.039
 http://hdl.handle.net/10012/16772

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Waterloo Research
Management Engineering