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
Competitive Advantage Jonathan Poland

Competitive Advantage

Competitive advantage refers to the unique advantages that a firm possesses over its competitors. In a highly competitive industry, firms…

Product Extension Jonathan Poland

Product Extension

Product extension is the practice of introducing new products or product lines that are related to a company’s existing products.…

Waste is Food Jonathan Poland

Waste is Food

The concept of “waste is food” is based on the idea that an industrial economy should not produce any waste except for biological nutrients that can be safely returned to the environment.

Data Analysis Jonathan Poland

Data Analysis

Data analysis is the process of collecting, organizing, and examining data in order to draw conclusions and make informed decisions.…

Law of Demand Jonathan Poland

Law of Demand

The law of demand is a fundamental principle in economics that states that, all other factors being equal, the quantity…

First Principles Thinking Jonathan Poland

First Principles Thinking

Overview First principles thinking is a method of reasoning that involves breaking down complex problems into their most basic and…

Geographic Segmentation Jonathan Poland

Geographic Segmentation

Geographic segmentation is a marketing strategy that involves dividing a target market into smaller groups based on geographical characteristics such…

Call To Action Jonathan Poland

Call To Action

A call to action (CTA) is a phrase or statement that is used to encourage a specific response or action…

Everyday Low Price Jonathan Poland

Everyday Low Price

Everyday low price, commonly abbreviated as EDLP, is a pricing strategy in which a retailer offers its products at a…

Content Database

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

Human Resources Jonathan Poland

Human Resources

Human resources is the department within a business that is responsible for managing and coordinating the people who work for…

Hyperinflation Jonathan Poland

Hyperinflation

Hyperinflation is a situation in which there is a rapid and significant increase in the price of goods and services,…

Customer Needs Jonathan Poland

Customer Needs

Customer needs are the factors that make a product or service valuable to a customer. These needs can be functional,…

What is Marketability? Jonathan Poland

What is Marketability?

The marketability of a brand, product, or service refers to its competitiveness within a market. It is the likelihood that…

Management Levels Jonathan Poland

Management Levels

A management level is a layer of accountability and responsibility in an organization. It is common for organizations to have…

Technology Risk Jonathan Poland

Technology Risk

Technology risk refers to the risk that technology shortcomings may result in losses for a business. This can include the…

Product Demand Jonathan Poland

Product Demand

Product demand refers to the desire or need for a particular product or service in the market. It is a…

Bottleneck Jonathan Poland

Bottleneck

A bottleneck refers to a point of constriction or reduction in capacity that can limit productivity, efficiency, or speed. It…

What is a Flagship? Jonathan Poland

What is a Flagship?

A flagship is a product or service that represents the best a company has to offer and is intended to…