Direct rebound effect for passenger transport: Empirical evidence from Hong Kong

Energy consumption by passenger transport in Hong Kong increased rapidly in the past decades and in 2008 it accounted for 19.7% of total energy use. Improving energy efficiency has been widely regarded as an effective way for reducing energy use in the transport sector. However, the expected energy savings from energy efficiency improvement are likely to be discounted due to the existence of rebound effect. This paper employs econometric models to estimate the direct rebound effect for private passenger transport in Hong Kong. We find that the magnitudes of the direct rebound effect are respectively 45% and 35% for 1993–2009 and 2002–2009, which indicates that there was a declining trend in the direct rebound effect for passenger transport over time. It also indicates that the direct rebound effect needs to be taken into consideration in assessing the impact of energy efficiency measures on reducing energy use in Hong Kong.