Modelling Rebound Effects in System Dynamics

Abstract

The induction of demand by increasing the efficiency of a production or consumption process is known as the rebound effect. Feedback loops in System Dynamics can be used to conceptualize the structure of this complex phenomenon and also for communicating model-based insights. In passenger transport, the rebound effect can be induced through increased cost efficiency (direct economic rebound) and/or increase in speed (time rebound). In this paper we review and compare two models on environmental effects of passenger transport—including a model on the role of information and communication technology. We highlight the feedback mechanisms used to deal with the rebound effect (price, efficiency, and time rebound).