โ™ป๏ธ Jevons Paradox

Simulate how efficiency improvements can increase total resource consumption through the rebound effect.

What is the Jevons Paradox?

In 1865, economist William Stanley Jevons observed that improved steam-engine efficiency led to more coal consumption, not less. When a resource becomes cheaper to use, demand often rises enough to overwhelm the savings โ€” this is the rebound effect. When the rebound is large enough to exceed 100 % of savings, total consumption rises above its starting point: the Jevons Paradox.

Real-World Scenarios

Adjust Parameters

How much more efficient is the new technology? 50 % means the same service uses half the resource.

5 %100 % (2ร— efficiency)200 % (3ร— efficiency)

By what percentage does demand increase for every 1 % price drop? 0 = no rebound, 1 = proportional, >1 = amplified.

0 (inelastic)1 (unit elastic)3 (highly elastic)
10010,000

Results

Original
1,000
units/year
Naive Expected
667
units/year (no rebound)
Actual (with rebound)
844
units/year
Net Change
-156 units/year(-15.6 %)
Rebound Effect
53.3 % of savings eroded
Moderate rebound

Consumption Comparison

Original1,000 units/year
Naive Expected (no rebound)667 units/year
Actual (with rebound)844 units/year

How the Math Works

Efficiency factor f = 1.500 โ€” the new technology delivers 1.50ร— more service per unit of resource.
Effective price drop = (f โˆ’ 1) / f = 33.3 % โ€” cost per unit of service falls by this amount.
Demand increase = elasticity ร— price drop = 0.8 ร— 33.3 % = 26.7 %
New consumption = 1,000 ร— (1 + 26.7 %) รท 1.50 = 844 units/year
Jevons Paradox occurs when elasticity > f. Currently: 0.8 โ‰ค 1.50 โ†’ Paradox does not occur โœ“