
Potential energy savings from energy efficiency improvements are partly or entirely offset by rebound effects. Rebound effects can be decomposed into two effects: direct rebound effect (DRE) and indirect rebound effect (IRE). The latter has not been studied as much as the former. This paper focuses on two types of IRE, which have not been studied previously. Firstly, the effect of a fall in energy prices because of energy efficiency improvements on energy consumption is examined. It is shown that the smaller the price elasticity of energy supply, the more significant is this type of IRE. Secondly, the paper tries to incorporate the bandwagon effect with the rebound effect. An energy service that has a large bandwagon effect can bring about a significant rebound effect.
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