Jevons Paradox

About Jevons Paradox:

• It is the idea that technological progress that makes a resource cheaper or more efficient to use often leads to an increase in demand for that resource.
• This refers to a form of induced demand wherein efficiency improvements in the use of a resource causes increased consumption of the resource rather than a decrease in its use.
• Origin of Jevons Paradox:
  • It was proposed by the English economist, William Stanley Jevons, in his 1865 book The Coal Question.
  • Jevons observed that the efficient use of coal made possible by technology actually caused more coal to be extracted and consumed rather than allowing the preservation of existing reserves.
  • Technological progress, in other words, only allows people to satisfy demands that could not be satisfied earlier in the absence of an appropriate technology.
• Examples of Jevons Paradox:
  • Fuel Efficiency and Vehicle Usage: Vehicle fuel efficiency improvements can also increase consumption. When cars become more fuel-efficient, the cost of driving per mile decreases, making it more affordable for individuals to use their vehicles — often increasing vehicle miles travelled, offsetting any energy conservation benefits from improved fuel efficiency.
  • Digital Technology and Energy Consumption: The rise of digital technology and the internet has undoubtedly brought numerous benefits to society. Yet, the proliferation of intelligent devices and data centres has substantially increased energy consumption.