The high environmental rebound effect (ERE) magnitude found in this study highlights the importance of considering technology–demand interactions in the environmental assessment of alleged eco-innovations. The results cast a critical light on the application of technology-oriented approaches, such as traditional product LCA, for informing environmental policy. While the application of LCA is still appropriate for determining product environmental profiles that can be used for some applications such as industrial eco-design (Millet et al., 2007), it is not an adequate guide to RGFP966 policy on, since it ignores absolute environmental changes. While product-level LCA estimates indicated that all the studied innovations generally present a better environmental performance, the applied micro-to-macro model showed that environmental pressures would actually have increased in most cases due to the introduction and diffusion of the innovations, mostly because of the ERE. Only those innovations in which the change in transport costs is negligible or positive (bound income) show decreases in environmental pressures. In these cases, the ERE does not outweigh the technology improvements or even enhances them. Based on these results, it can be concluded that claims of environmental superiority of the seven alleged eco-innovations studied are only supported in their actual economic functioning in three cases: catalytic converters, direct fuel injection systems and P + R facilities.