Abstract: The rebound effect has been a hot topic in the economic sphere. Nowadays, as the economy grows and the energy supply confronts severe situation, it becomes more and more significant for us to explore the relation between energy efficiency and energy consumption. However, there has been a lack of unified and standard category methodology, even in terms of jargons and definitions. This paper conducts an economic analysis on the mechanism of energy rebound effect, on the basis of an international review of a wide range of definition of energy rebound effect, in order to better understand the substitution effect and income effect in the direct rebound effect from a microcosmic point of view, and thus gets a better grip of the existence of rebound effect.