Jevons Paradox: Efficiency Gains Lead to Increased Consumption?

The Jevons paradox, in economics, describes how technological advancements increasing resource efficiency can paradoxically lead to higher overall consumption. In 1865, Jevons noted that improvements in steam engine efficiency actually increased coal consumption. Modern economics identifies a 'rebound effect' where efficiency lowers costs, boosting demand. The Jevons paradox occurs when this rebound effect outweighs efficiency gains. Debate exists on the rebound effect's size and relevance to conservation policy; some suggest pairing efficiency improvements with policies limiting consumption.