Calculation Direct CO2 Rebound Effects from Improving Energy Efficiency in the Transportation Sector of Iran Provinces

"Rebound effect" is a term that implies by improving energy efficiency, the real cost energy services per unit decreases and therefore demand increases for energy services. Hence, the potential energy saving and reducing CO2 emissions from improving efficiency will be offset. The main objective in this study is the calculation of direct CO2 rebound effects from improving energy efficiency in the transportation sector, which was conducted for Iran provinces during the period 2006-2015 in three stages; First, by using the Slutsky equation, computational formula direct CO2 rebound effects is extracted, and then with estimated price and income elasticities of demand in the transportation sector, the direct CO2 rebound effects was calculated for the 30 provinces in ten years. The results show that the rebound effects due to the implementation of the elimination of energy subsidies and increasing fuel prices, have a trend convergence and declining effect (on average 2/51 to 1/09 percent).
JEL Classification: C51, C23, Q41, R41