Jevons Paradox

One way to understand this is to observe that an increase in the Efficiency with which a resource (e.g., fuel) is used is effectively equivalent to a decrease in the price of what the use of that resource achieves (e.g., work). Generally speaking, a decrease in price will be associated with an increase in demand. (Thus with a lower price for work, more work will be "purchased".) This increase in demand for the results of using the resource may, or may not, be large enough to offset the original efficiency gain. In the simplest case, if the cost of fuel remains constant, but the efficiency of its conversion into work is doubled, the effective price of work is halved and so more work will be purchased. If the amount of extra work purchased more than doubles, in this case, then the demand for fuel would actually increase, not decrease. A full analysis would have to take into account the fact that a change in the demand for fuel would also have an effect on the price of fuel, and therefore on the effective price of work, also.

In his 1865 book ''The Coal Question'', Jevons observed that England 's consumption of Coal soared after James Watt introduced his coal-fired Steam Engine , which greatly improved the efficiency of Thomas Newcomen 's earlier design. Watt's innovations made coal a more cost effective power source, leading to increased use of his steam engine in a wide range of industries. This in turn made total coal consumption rise, even as the amount of coal required for any particular application fell.

SEE ALSO

Energy Conservation

Marginalism

Information About

Jevons Paradox