Jevons' paradox [An article from: Ecological Economics]

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In The Coal Question William Stanley Jevons [Jevons, W.S., 1865/1965. The Coal Question: an Inquiry Concerning the Progress of the Nation, and the Probable Exhaustion of our Coal-mines. 3rd edition 1905, Ed. A.W. Flux. Augustus M. Kelley, New York.] maintained that technological efficiency gains-specifically the more ''economical'' use of coal in engines doing mechanical work-actually increased the overall consumption of coal, iron, and other resources, rather than ''saving'' them, as many claimed. Twentieth-century economic growth theory also sees technological change as the main cause of increased production and consumption. In contrast, some ecologically-oriented economists and practically all governments, green political parties and NGOs believe that efficiency gains lower consumption and negative environmental impact. Others doubt this 'efficiency strategy' towards sustainability, holding that efficiency gains 'rebound' or even 'backfire' in pursuing this goal, causing higher production and consumption. Because many environmental problems demand rapid and clear policy recommendations, this issue deserves high priority in ecological economics. If Jevons is right, efficiency policies are counter-productive, and business-as-usual efficiency gains must be compensated for with physical caps like quotas or rationing.