**Ying Han, Jianhua Shi \*, Yuanfan Yang and Yaxin Wang**

School of Business Administration, Northeastern University, Shenyang 110169, China; yhan@mail.neu.edu.cn (Y.H.); 1601546@stu.neu.edu.cn (Y.Y.); 1601547@stu.neu.edu.cn (Y.W.) **\*** Correspondence: 1510506@stu.neu.edu.cn

Received: 29 April 2019; Accepted: 27 May 2019; Published: 30 May 2019

**Abstract:** Based on methods of price decomposition and spatial econometrics, this paper improves the model for calculating the direct energy rebound effect employing the panel data of China's urban residents' electricity consumption for an empirical analysis. Results show that the global spatial correlation of urban residents' electricity consumption has a significant positive value. The direct rebound effect and its spillover effects are 37% and 13%, respectively. Due to the spatial spillover effects, the realization of energy-saving targets in the local region depends on the implementation effect of energy efficiency policies in the surrounding areas. However, the spatial spillover effect is low, and the direct rebound effect induced by the local region is still the dominant factor affecting the implementation of energy efficiency. The direct rebound effect for urban residents' electricity consumption eliminating the spatial spillover effect does not show a significant downward trend. The main reason is that the rapid urbanization process at the current stage has caused a rigid residents' electricity demand and large-scale marginal consumer groups, which offsets the inhibition effect of income growth on the direct rebound effect.

**Keywords:** energy efficiency; direct energy rebound effect; spatial spillover effect; price decomposition
