The 'rebound' effect of energy-efficient cars overplayed

[OKIsItJustMe]

12. How about addressing the Nature article linked to by the OP?

http://dx.doi.org/10.1038/493475a

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Macroeconomic rebound effects are hard to pin down, but simple economic theory sets a limit. Standard assumptions linking supply and demand suggest that 'backfire' due to the price effect is impossible: if global demand for oil falls, the oil will become cheaper, so the incentive to produce it will be reduced. Less oil will be used overall, even though the cost is lower.

[font size=4]Complicated sums[/font]
The four rebound effects cannot simply be added together to give the combined effect, because the presence of one may erode others. For example, when both the direct and indirect apply, the result is less than the sum of the two because any direct rebound effect decreases the amount of money available to spend elsewhere. Macroeconomic models estimate total combined rebound effects to be in the range of 20–60%.

In sum, rebound effects are small and are therefore no excuse for inaction. People may drive fuel-efficient cars more and they may buy other goods, but on balance more-efficient cars will save energy.

Energy-efficiency measures should be on the policy menu to curb energy use and to address global warming. Stricter energy-efficiency legislation should be considered across all sectors, alongside options that are not subject to rebound effects, such as carbon pricing.[/font][/font]