What is Jevon’s Paradox?

Jevon’s paradox describes how a more efficient use of one resource can actually result in the opposite: an increase in use of that particular resource. In 1992, Harry Saunders built on Jevon’s paradox and said “energy efficiency gains will increase consumption above where it would be without these gains”. Efficiency alone is not enough to reduce the overall consumption of energy, but needs to be employed in conjunction with policies that limit the use of energy as well.

Categories Economic Concepts