on Feb 25, 2025 i learned ...

Jevons paradox

In economics, the Jevons paradox1 (/ˈdʒɛvənz/; sometimes Jevons effect) occurs when technological advancements make a resource more efficient to use (thereby reducing the amount needed for a single application); however, as the cost of using the resource drops, if the price is highly elastic, this results in overall demand increases causing total resource consumption to rise.

Image: Jono Hey, Sketchplanations

Case study:

You're switching from a car that gets 10 kilometers per liter to one that gets 20. The initial savings make you feel like you're being more efficient, so you drive more frequently, perhaps for leisure or convenience. This increase driving, driven by the feeling of efficiency, leads to higher overall gas consumption. It's illustrating the Jevons paradox.

Footnotes

  1. https://en.wikipedia.org/wiki/Jevons_paradox