Does Size Matter? Empirical Evidence for Product Specification Rebound Effects
Master thesis
Permanent lenke
http://hdl.handle.net/11250/2623810Utgivelsesdato
2019Metadata
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- Master of Science [1822]
Sammendrag
The current study explores a new field with the concept of rebound effects that have
been receiving scant attention – namely, product specification rebound effects
which occur when consumers choose larger or more powerful specifications of the
product as a response to improvements in energy efficiency. Although there is a
theoretical foundation for their existence, almost no empirical study has previously
focused on product specification rebound effects. Hence, the study aimed to
empirically confirm whether efficiency improvements lead to product specification
rebound effects, as well as to explore different factors that may affect their
magnitude.
Our findings support the existence of product specification rebound effects and
show that a significant share of the anticipated energy efficiency gains can be lost
due to product specification rebound effects. The study also finds that greater
efficiency improvements tend to lead to greater product specification rebound
effects. As energy efficiency is seen as one of the most fundamental approaches to
tackle climate change, this raises a question over the effectiveness of energy
efficiency measures as a way of tackling climate change.
The study has significant implications for both policy makers and manufacturers,
as the introduction of more energy efficient technologies results in consumers
making product upgrades. From the policy making perspective, this means that
expected energy gains from efficiency measures will be vastly offset by product
specification rebound effects. As a result, there will not be any significant reduction
in energy consumption, which is critical for tackling climate change. At the same
time, from the business perspective, marketing energy efficiency seems to be a
potentially successful strategy to induce product upselling. By introducing more
energy efficient technologies, manufacturers can sell bigger and more powerful
specifications of the product, which are usually more profitable.
Beskrivelse
Masteroppgave(MSc) in Master of Science in Business, Marketing - Handelshøyskolen BI, 2019