12 Facts About Jevons paradox

In economics, the Jevons paradox occurs when technological progress or government policy increases the efficiency with which a resource is used, but the falling cost of use increases its demand, negating reductions in resource use.

In 1865, the English economist William Stanley Jevons paradox observed that technological improvements that increased the efficiency of coal use led to the increased consumption of coal in a wide range of industries.

Jevons paradox argued that, contrary to common intuition, technological progress could not be relied upon to reduce fuel consumption.

The Jevons paradox' effect occurs when the effect from increased demand predominates, and the improved efficiency results in a faster rate of resource utilization.

Jevons paradox' effect was first described by the English economist William Stanley Jevons paradox in his 1865 book The Coal Question.

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Jevons paradox observed that England's consumption of coal soared after James Watt introduced the Watt steam engine, which greatly improved the efficiency of the coal-fired steam engine from Thomas Newcomen's earlier design.

Jevons paradox argued that this view was incorrect, as further increases in efficiency would tend to increase the use of coal.

Jevons paradox' effect is perhaps the most widely known pitfall in environmental economics.

The Jevons' effect is found in socio-hydrology, in the safe development paradox called the reservoir effect, where construction of a reservoir to reduce the risk of water shortage can instead exacerbate that risk, as increased water availability leads to more development and hence more water consumption.

Jevons paradox warned that fuel efficiency gains tend to increase fuel use.

However, this does not imply that improved fuel efficiency is worthless if the Jevons paradox' effect occurs; higher fuel efficiency enables greater production and a higher material quality of life.

Jevons paradox' effect is sometimes used to argue that energy conservation efforts are futile, for example, that more efficient use of oil will lead to increased demand, and will not slow the arrival or the effects of peak oil.