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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. [ABSTRACT FROM AUTHOR]

• We estimate the energy efficiency and direct rebound effect of residential electricity consumption by using the stochastic energy demand frontier model. • The average value of efficiency is 0.491, and the average rebound effect is 48%. • We find that electricity price and household size have a negative impact on the rebound effect, while the impact of income is inverted U-shaped. • The rebound effect varies across before and after the implementation of the increasing block pricing policy, considering rural and urban residents and different regions. The rebound effect is a potential threat to energy efficiency related policies to save energy. Based on data from China family panel studies over the period 2010–2018, this paper measures the energy efficiency and direct rebound effect of residential electricity consumption by using the stochastic energy demand frontier model. The result shows that the average value of efficiency is 0.491, and the average rebound effect is 48%. It means that there is still room for improvement in China's household electricity consumption efficiency. But the expected electricity- saving after improving efficiency can only achieve 52%. Besides, we find that electricity price and household size have a negative impact on the rebound effect, while the impact of income is inverted U-shaped. Finally, the rebound effect varies between before and after the implementation of the increasing block pricing policy, considering rural and urban residents and different regions. These findings provide some policy implications for the residential electricity pricing system under the background of energy conservation and climate change. [ABSTRACT FROM AUTHOR]