Modeling the rebound effect in two manufacturing industries

► We propose a model to study determinants of the rebound effect in two industries. ► The model accounts for interactions between heterogeneous consumers, producers and power plants. ► We find that clustering of consumer choices makes the rebound effect less likely to occur. ► The snob effect increases the probability of energy backfire. ► The effectiveness of policies aimed at reducing share of fossil fuel in production is sensitive to the network effect.