Two models of the village firewood-gathering economy are developed: one where the firewood is treated by households as a common-property resource and one where it is treated as a private asset. Under both models, rebound of consumption occurs as a result of distributing more-efficient wood-burning stoves into households. It follows that policies premised on the assumption that the use of scarce resources can be curtailed simply by raising the energy efficiency of appliances used in the household are flawed. The same policies, however, when judged according to their contribution to the utility of the household appear to be better.
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