What is Jevons Effect?

What is Jevons Effect?

What is Jevons Effect? Jonathan Poland

Jevons paradox, also known as the Jevons effect, is a phenomenon in which an increase in the efficiency of resource use leads to an increase in resource consumption, rather than a decrease. The paradox is named after economist William Stanley Jevons, who first described it in his 1865 book, “The Coal Question.”

Jevons observed that as the efficiency of steam engines improved, coal consumption actually increased, rather than decreasing as one might expect. He argued that this was due to the fact that improvements in efficiency led to a decrease in the cost of using coal, which in turn increased demand for coal. This increased demand offset the savings that were realized through improved efficiency, resulting in overall higher resource consumption.

Jevons paradox has been observed in a number of other resource consumption contexts, including energy use, water use, and transportation. For example, as cars become more fuel efficient, people may be more likely to drive more, leading to an overall increase in fuel consumption.

One of the key drivers of Jevons paradox is the rebound effect, which refers to the tendency of people to use more of a resource when it becomes cheaper or more convenient to do so. This can lead to a “rebound” in resource consumption, even when efficiency improvements have been made.

Jevons paradox highlights the importance of considering the broader economic and social factors that can influence resource. There are several factors that can contribute to the paradox, including:

  1. Decreased costs: As the efficiency of a resource increases, the cost of using it may decrease, making it more affordable and attractive to consumers.
  2. Increased convenience: Improved efficiency can also increase the convenience of using a resource, making it more appealing to consumers.
  3. Changes in behavior: Improved efficiency can also alter consumer behavior, as people may be more likely to engage in activities that they previously avoided due to the cost or inconvenience of using the resource.
  4. Indirect impacts: Improved efficiency may also have indirect impacts on resource consumption, such as increasing the demand for products or services that use the resource.
Learn More
Soft Launch Jonathan Poland

Soft Launch

A soft launch is a product launch that is limited in scope, such as a release to a small group…

Inferior Good Jonathan Poland

Inferior Good

An inferior good is a type of consumer good for which the demand decreases as the consumer’s income increases. In…

Capitalist Realism Jonathan Poland

Capitalist Realism

Capitalist realism is the theory that capitalism is the only economic system that is realistically possible or viable. This term…

Examples of Capital Intensive Jonathan Poland

Examples of Capital Intensive

An industry, organization, or activity that is capital intensive requires a large amount of fixed capital, such as buildings and…

Organizational Capital Jonathan Poland

Organizational Capital

Organizational capital refers to the intangible assets and resources within an organization that support its operations and enable it to…

Critical Mass Jonathan Poland

Critical Mass

In economics, critical mass refers to the minimum size a company needs to be in order to effectively compete in…

Innovation Metrics Jonathan Poland

Innovation Metrics

Innovation metrics are tools used to assess the innovation efforts of a company. It can be challenging to accurately measure…

Brand Experience Jonathan Poland

Brand Experience

Brand experience refers to the overall perception and feelings that a consumer has while interacting with a brand. It includes…

Customer Retention Jonathan Poland

Customer Retention

Customer retention is the practice of reducing the loss of customers to competitors. A high customer retention rate typically results…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Corrective Action Plan Jonathan Poland

Corrective Action Plan

A corrective action plan is a process designed to identify and address problems or issues within an organization. It involves…

Cross Merchandising Jonathan Poland

Cross Merchandising

Cross merchandising is a retail strategy that involves placing related or complementary products in close proximity to each other in…

Bankability Jonathan Poland

Bankability

Bankability is a term used to describe the ability of a project or venture to secure financing from a lender…

Compliance Risk Jonathan Poland

Compliance Risk

Compliance risk refers to the risk that an organization may face as a result of not complying with laws, regulations,…

Market Failure Jonathan Poland

Market Failure

Market failure is a situation in which the market does not produce optimal outcomes for society as a whole. It…

Sentiment Analysis Jonathan Poland

Sentiment Analysis

Sentiment analysis is the process of analyzing and extracting subjective information from text data. It is a type of natural…

Prospecting Jonathan Poland

Prospecting

Sales prospecting is the process of identifying and researching potential customers for a business’s products or services. This typically involves…

Employee Goals Jonathan Poland

Employee Goals

Employee goals are specific targets or objectives that are set for an individual employee in order to align their work…

What are Finished Goods? Jonathan Poland

What are Finished Goods?

Finished goods are products that have completed the manufacturing process and are ready for sale to customers. They are the…