# Jevons' Paradox **Jevons' Paradox** is a concept in economics that occurs when technological improvements increase the efficiency of resource use, but instead of reducing overall consumption of that resource, the demand for it rises. This counterintuitive effect was first observed by the British economist William Stanley Jevons in his 1865 book *The Coal Question*. ## Example: Jevons noticed that as coal-powered engines became more efficient in the Industrial Revolution, coal consumption increased rather than decreased. The improved efficiency reduced costs, which led to expanded industrial activities and higher overall coal demand. ## Key Points: 1. **Efficiency Gains ≠ Lower Consumption:** Increased efficiency often makes a resource cheaper to use, driving higher demand and offsetting potential savings. 2. **Rebound Effect:** The phenomenon behind Jevons' Paradox is often linked to the rebound effect, where the benefits of efficiency are counteracted by increased usage. 3. **Wider Applications:** The paradox applies to various fields, such as energy, water, and transportation. For example, more fuel-efficient cars can lead to people driving more, consuming more fuel overall. ## So What? Understanding Jevons' Paradox highlights the importance of pairing efficiency improvements with policies like demand management, sustainable practices, or alternative resource adoption to ensure net reductions in resource use.