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
The GSA Process 150 150 Jonathan Poland

The GSA Process

The General Services Administration (GSA) is an independent agency of the United States government responsible for managing and supporting the…

Elastic Demand Jonathan Poland

Elastic Demand

Elastic demand is a term used in economics to describe the responsiveness of the quantity of a good or service…

Product Durability Jonathan Poland

Product Durability

A durable product, often referred to as a durable good, is a product that does not quickly wear out or,…

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…

Team Manager Jonathan Poland

Team Manager

A team manager is responsible for directing and controlling an organizational unit. This leadership role involves authority and accountability for…

Product Transparency Jonathan Poland

Product Transparency

Product transparency refers to the practice of providing extensive information about products and services, including their ingredients, production methods, and…

Beautiful Words Jonathan Poland

Beautiful Words

Beautiful words are words that have a mysterious, wondrous, or charming quality. They can also have a dark or conflicted…

Types of Capital Jonathan Poland

Types of Capital

Capital is an asset that is expected to produce future economic value. It is a productive resource that is used…

Management Efficiency Jonathan Poland

Management Efficiency

Management efficiency refers to the ability of a company or organization to effectively utilize its resources, such as capital, labor,…

Content Database

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

Business Constraints Jonathan Poland

Business Constraints

Business constraints are limitations or factors that can impact an organization’s ability to achieve its goals and objectives. These constraints…

Inventory 150 150 Jonathan Poland

Inventory

Understanding inventory is crucial for the successful operation of many businesses. Inventory is a broad area with many facets, and…

Digital Maturity Jonathan Poland

Digital Maturity

Digital maturity refers to an organization’s ability to effectively utilize information technology to achieve its goals and objectives. This can…

What are Tactics? Jonathan Poland

What are Tactics?

Tactics are short-term, immediate strategies that are designed to respond to fast-changing realities and situations. They are focused on taking…

Barriers to Entry Jonathan Poland

Barriers to Entry

Barriers to entry refer to factors that make it difficult for new companies to enter a particular market. These barriers…

Intuitive Surgical Jonathan Poland

Intuitive Surgical

Intuitive Surgical is a medical technology company that designs, manufactures, and markets advanced surgical robotic systems. The company was founded…

Risk Exposure Jonathan Poland

Risk Exposure

Risk exposure refers to the potential costs that an organization could incur as a result of a particular risk or…

SLED Contracts 150 150 Jonathan Poland

SLED Contracts

A SLED contract refers to a contract awarded by State, Local, and Education (SLED) government entities. These contracts involve the…

Coding Skills Jonathan Poland

Coding Skills

Coding skills are a combination of talents, knowledge, and experience that enable an individual to create valuable software. This can…