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From 1865 to today: Why efficiency gains may lead to increased resource use?
In 1865, British economist William Stanley Jevons first proposed what is now widely recognized as the "Jervans Paradox." This paradox means that when technological progress makes the use of a resource more efficient, this should theoretically reduce the use of that resource. However, the actual situation is that due to the reduction in usage costs, the demand for this resource may increase, and the final usage will not only not decrease, but may also increase significantly.
“Improving fuel efficiency often leads to increased fuel usage, which is counterintuitive.”
Historical background of Jevons’ paradox
In his book The Coal Problem, Jevans observed that coal consumption in Britain rose sharply after James Watt invented the efficient steam engine. Watt's innovations made coal a more cost-effective energy source, leading to the widespread use of steam engines in several industries, with a consequent increase in overall coal consumption, even as the amount of coal required per unit of use fell. Jevans made it clear that economical use of fuel does not mean a reduction in consumption, but rather "the opposite of the truth."
How Gervans’ Paradox works
When the usage efficiency of a certain resource increases, the cost of using the resource decreases relatively. Compared with the benefits it brings, the cost of using the resource becomes lower. Generally speaking, a reduction in costs will stimulate an increase in demand, which is called the "rebound effect." For example, when a car's fuel efficiency improves, car owners tend to drive longer distances, thereby increasing the demand for fuel.
"Cost reduction caused by improved usage efficiency may lead to increased demand, which has long been studied in depth in the field of economics."
Reexamination in modern economics
Modern economists have revived Jeffans' theory and conducted a comprehensive re-examination of it. In fact, in addition to improving the amount of resources required for a single purpose, improvements in efficiency will also promote the growth of real income, thereby accelerating the development of the overall economy, which will undoubtedly increase the demand for various resources. In addition, the "Jervans Paradox" also exists in fields including agriculture and water resources management, in which improved resource efficiency leads to an increase in overall consumption.
Policy suggestions for limiting demand
Although promoting efficiency is the policy direction of many governments today, environmental economists worry that this strategy may be counterproductive, causing the demand for resources to continue to rise. Therefore, in order to effectively control the use of resources, efficiency improvements must be combined with other restrictive policies, such as imposing green taxes or implementing emission restrictions, to keep usage costs stable or increase. Such policy measures can effectively suppress the occurrence of demand rebound effect.
Different case analysis
Take agriculture as an example. Increasing the yield per unit area of a crop should reduce the demand for land, but at the same time, it also makes it more profitable for farmers, driving them to convert more land to the production of that crop. Finally, May result in an increase in total land use.
"When we explore strategies to improve resource efficiency, have we considered the possible demand rebound effect?"
Conclusion
From Jevans' point of view, it is difficult to solve the problems of resource depletion and environmental degradation simply by improving the efficiency of resource use. Therefore, when we pursue sustainable development, it may be a wiser choice to apply sufficient policy tools to limit demand. So, in future resource management, can we find a more effective balance point to ensure the sustainable use of resources?
