Direct energy rebound effect for road transportation in China

The enhancement of energy efficiency stands as the principal avenue for attaining energy conservation and emissions reduction objectives within the realm of road transportation. Nevertheless, it is imperative to acknowledge that these objectives may, in part or in entirety, be offset by the phenomenon known as the energy rebound effect (ERE). To quantify the long-term EREs and short-term EREs specific to China’s road transportation, this study employed panel cointegration and panel error correction models, accounting for asymmetric price effects. The findings reveal the following: The long-term EREs observed in road passenger transportation and road freight transportation range from 13% to 25% and 14% to 48%, respectively; in contrast, the short-term EREs in road passenger transportation and road freight transportation span from 36% to 41% and 3.9% to 32%, respectively. It is noteworthy that the EREs associated with road passenger transportation and road freight transportation represent a partial rebound effect, falling short of reaching the magnitude of a counterproductive backfire effect. This leads to the inference that the upsurge in energy consumption within the road transportation sector cannot be solely attributed to advancements in energy efficiency. Instead, various factors, including income levels, the scale of commodity trade, and industrial structure, exert more substantial facilitating influences. Furthermore, the escalation of fuel prices fails to dampen the demand for energy services, whether in the domain of road passenger transportation or road freight transportation. In light of these conclusions, recommendations are proffered for the formulation of energy efficiency policies pertinent to road transportation.