Jevons paradox

Jevons Paradox is an economic phenomenon that was first described by the English economist William Stanley Jevons. The paradox suggests that as technological progress increases the efficiency with which a resource is used, the rate of consumption of that resource may increase, rather than decrease. This is in contrast to the intuitive assumption that improving the efficiency of resource use should lead to a decrease in consumption of that resource.

History

The Jevons Paradox was first described by William Stanley Jevons in his 1865 book, The Coal Question. Jevons observed that as improvements in technology made coal more cost-effective to use, the demand for coal increased and more coal was consumed. This observation contradicted the common belief that improving the efficiency of coal use would decrease the demand for coal and thus the amount of coal consumed.

Explanation

The Jevons Paradox occurs because improvements in efficiency lower the relative cost of using a resource, which tends to increase the quantity of the resource demanded, potentially offsetting any savings from increased efficiency. This is known as the rebound effect. In some cases, the increase in demand may be so great that it more than offsets the efficiency gains, leading to an overall increase in resource use. This is known as backfire.

Examples

The Jevons Paradox has been observed in various contexts, including energy use, water use, and data consumption. For example, as the efficiency of computer data storage has increased, the total amount of data stored has also increased, rather than decreased. Similarly, improvements in water use efficiency have often led to increased total water use.

Implications

The Jevons Paradox has significant implications for energy policy and environmental sustainability. It suggests that policies aimed at improving resource efficiency may not be sufficient to reduce overall resource consumption and environmental impact. Instead, such policies may need to be complemented by measures that limit resource use directly.

See also

• Rebound effect (conservation)
• Khazzoom–Brookes postulate
• Energy conservation
• Sustainable development