TB: Jevons Paradox

Definition

Making a resource's use more efficient tends to increase total consumption of that resource, not decrease it. Named after economist William Stanley Jevons, who observed in 1865 that more efficient steam engines led to increased coal consumption, not less.

Why it matters

Efficiency gains are routinely expected to reduce resource use, but Jevons Paradox shows why this is often wrong: efficiency lowers the effective cost of using a resource, which stimulates demand and expands use. The rebound effect can fully offset — or exceed — the original efficiency gain. This has profound implications for energy policy and technology optimization.

Examples from reading

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See also