The Long Run Demand for Lighting: Elasticities and Rebound Effects in Different Phases of Economic Development

The research examines the historical demand for lighting in the UK, finding that income and price elasticities peaked during the late 19th century, leading to 'backfire' where efficiency gains increased total energy use. In the 20th century, elasticities declined, meaning efficiency improvements began to yield net energy savings, though significant rebound effects persist.

• Between 1800 and 2000, the real price of lighting services in the UK fell more than 3,000-fold, while total lighting consumption increased 40,000-fold and per capita consumption rose 220-fold.
• Income and price elasticities of demand for lighting increased dramatically between the 1840s and 1890s, with income elasticity peaking at 3.5 and price elasticity at -1.7.
• During the period from 1750 to 1900, price elasticities were greater than one, indicating that efficiency improvements in lighting technology resulted in 'backfire', where energy consumption increased despite efficiency gains.
• In the 20th century, both income and price elasticities fell; by the beginning of the 21st century, income elasticity dropped to between 0.25 and 0.4, and price elasticity ranged between 0.5 and 0.7.
• The authors suggest that lighting transitioned from a basic necessity before 1850 to a 'luxury' good peaking around 1900, before becoming a 'necessity' again around 1950 as associated activities became part of everyday life.
• The study concludes that in developing economies, the combination of rising incomes and access to efficient lighting could lead to very rapid growth in consumption, potentially replicating the high-elasticity growth patterns seen in the UK's historical development.

APA

Fouquet, R., & Pearson, P. J. (2011). The Long Run Demand for Lighting: Elasticities and Rebound Effects in Different Phases of Economic Development. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201108311105551487977932.pdf

Chicago

Fouquet, Roger, and Peter J.G. Pearson. The Long Run Demand for Lighting: Elasticities and Rebound Effects in Different Phases of Economic Development. Basque Centre for Climate Change, 2011. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201108311105551487977932.pdf.

Wikipedia

{{cite report |last1=Fouquet |first1=Roger |last2=Pearson |first2=Peter J.G. |title=The Long Run Demand for Lighting: Elasticities and Rebound Effects in Different Phases of Economic Development |publisher=Basque Centre for Climate Change |date=July 2011 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201108311105551487977932.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fouquet2011long, author = {Fouquet, Roger and Pearson, Peter J.G.}, title = {{The Long Run Demand for Lighting: Elasticities and Rebound Effects in Different Phases of Economic Development}}, institution = {Basque Centre for Climate Change}, year = {2011}, month = jul, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201108311105551487977932.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }