Energy Efficiency Benefits: Is Technophilic Optimism Justified?

Despite the increased focus on making energy more efficient, research has rarely examined the temporal impact of energy efficiency on environmental performance at the national level. Using archival data, we conduct an econometric analysis that provides empirical evidence indicating the negative effects of the rebound effect and the positive effects of technology. Our results suggest that an increase in per capita energy consumption does not lead to an increase in emissions, but it could negate the environmental benefits arising from energy efficiency. However, energy efficiency leads to an increase in per capita emissions for developed countries. Post hoc results show that energy efficiency influences the three sectors (household, services, and industrial) differently on per capita energy consumption and emissions. Implications for research and practice are discussed.