Jevons paradox

E530102

Jevons paradox is an economic observation that increased efficiency in using a resource can lead to higher overall consumption of that resource rather than a reduction.

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Statements (48)

Predicate Object
instanceOf economic concept
paradox
rebound effect
appliesTo electricity consumption
energy consumption
fossil fuel consumption
raw material use
transportation fuel use
water use
assumes price elasticity of demand for the resource is significant
category economic paradox
environmental paradox
clarification does not say efficiency must increase consumption in every case
requires sufficiently strong rebound for total consumption to rise above baseline
concerns aggregate or economy-wide resource use
contrastsWith engineering expectations of reduced consumption from efficiency
coreIdea efficiency improvements can lower effective cost of resource use and stimulate demand
increased efficiency in using a resource can lead to higher total consumption of that resource
technological progress can increase, rather than decrease, aggregate resource use
debatedIn climate policy discussions
sustainable development debates
describes relationship between efficiency and resource consumption
field economics
energy economics
environmental economics
resource economics
firstDiscussedIn The Coal Question NERFINISHED
firstDiscussedYear 1865
firstFormulatedBy William Stanley Jevons NERFINISHED
historicalExample coal consumption in 19th century Britain
implication climate and energy policy may require caps or pricing in addition to efficiency
efficiency policies alone may not reduce total resource use
technological efficiency gains can undermine conservation goals if demand is unconstrained
influences arguments about limits to growth
debates on decoupling economic growth from emissions
design of energy efficiency policies
mechanism economic growth enabled by efficiency increases total scale of activity
efficiency lowers effective price per unit of service
lower effective price increases demand for the service
namedAfter William Stanley Jevons NERFINISHED
oftenMisinterpretedAs claim that efficiency is always bad
relatedConcept backfire effect
decoupling of growth and resource use
demand elasticity
energy efficiency
green growth
induced demand
rebound effect

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William Stanley Jevons notableFor Jevons paradox