Over the next few decades, our focus has to be tackling climate change and reducing our impact on the planet. It’s a fine balance, but our efforts to help might also hinder the progress we make. It’s called “the rebound effect,” and it’s time to take a closer look at what it is.
Here are five things to know:
- Studies have shown that high-income earners are more likely to buy green, expensive climate-friendly products than those with a lower income. But studies also show that if your income increases, your carbon footprint is also likely to increase.
- Why? Because you have more funds available to spend. Which means more travel, flights, fuel and hotel accommodation, all of which means increased emissions. So all that great work you did buying products to help the climate is canceled out because your high earnings allow you to take trips or fly internationally. That’s what we call “the rebound effect.”
- Here’s another example: When a consumer deliberately aims to save energy, it often means they will save money, but that could also lead to increased emissions. Why? Buying a car is one example. Nearly everyone wants a more fuel-efficient car, which means less fuel used and less money spent on fuel. This frees up more money to drive on longer trips, further away, which means more carbon emissions. Another example of “the rebound effect!”
- The solution is making sure each of us focuses more and more upon buying low-carbon goods and services in all areas of our lives, including trips and vacations, and even our investments.
- Our banks could be investing our money in companies and products that again produce high-carbon emissions. We’ll also have to keep them focused! It’s a chain of vigilance that impacts each and every one of us.
If we are to be serious as a planet of people cutting our carbon output, we’ll have to be certain that all the good progress we make doesn’t rebound back in our faces.