Jevons paradox

Epic card · No. 11531

The Jevons paradox (pronounced , JEV-ənz) or Jevons effect is an economic phenomenon said to occur when technological improvements that increase the efficiency of a resource's use lead to a rise, rather than a fall, in total consumption of that resource. Greater efficiency reduces the amount of the resource needed per application, lowering its effective cost; if demand is sufficiently price elastic, this induces demand, frequently resulting in a net increase of total resource consumption. In 1865, the English economist William Stanley Jevons observed that technological improvements that increased the efficiency of coal use led to the increased consumption of coal in a wide range of industries. He argued that, contrary to common intuition, technological progress could not be relied upon to reduce fuel consumption. The issue has been re-examined by modern economists studying consumption rebound effects from improved energy efficiency. In addition to reducing the amount needed for a given...

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