What is Jevons paradox in Economics?

  • This refers to a form of induced demand wherein efficiency improvements in the use of a resource causes increased consumption of the resource rather than a decrease in its use.
  • It was proposed by the English economist, William Stanley Jevons, in his 1865 book The Coal Question.
  • Jevons observed that the efficient use of coal made possible by technology actually caused more coal to be extracted and consumed rather than allowing the preservation of existing reserves.
  • Technological progress, in other words, only allows people to satisfy demands that could not be satisfied earlier in the absence of an appropriate technology.


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