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Peakoil.com :: View topic - THE Jevons Paradox Thread (merged)
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THE Jevons Paradox Thread (merged)
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Tanada
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PostPosted: Wed Jul 04, 2007 7:16 am    Post subject: Re: Jevon's Paradox from Earthscan Publications Add User to Ignore List Reply with quote

It would be nice if our library would stock it, but as a foreign title with an expensive cover price that is not a high probabillity. If you buy it and then put it on Abebooks.com or halfprice.com or some such after you read it I might get to purchase it for a discount (hint hint) Wink
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MonteQuest
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PostPosted: Thu Jul 19, 2007 1:40 pm    Post subject: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

As we learned from this thread, Jevons Paradox - Death by conservation Jevons Paradox is not an argument against conservation or efficiency gains, it is a wakeup call to the reality of the expected results.

The unexpected results being that all observed efficiency gains to date have led to increased consumption.

How do we counter this?

Taxes lead to greater efficiency.

So does rationing.

How does one avoid the "rebound effect"?

Seems that all gains must be directed at reducing efficiency????? LOL!

So, what is left?

Taking all gains out of the market and using them to transition to a sustainable system, irrespective of economics?

Think this one through before you respond.
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MacG
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PostPosted: Thu Jul 19, 2007 1:54 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

Shooting from the hip here: Look at the examples. We have some resource stripped areas of this world where Jevon's Paradox have run rampant for at leat some fivehundred years. Just look at the Arab world and the 'stans. Add China and India prior to 1980. More and more people crammed tighter and tighter. They found ways to cope. Not very nice. But they seem to have preferred 'not very nice' over 'death'. Life seem to be a precious thing, and most people seem to sacrifice just about everything to stay in Life. I don't object - apply to me too.
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PostPosted: Thu Jul 19, 2007 4:00 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

Monte- is this a trick question? It is seemingly impossible to offset the Paradox in a "free market". Truly- only global ratification of binding international agreements to simultaneously reduce consumption levels is the only way one could overcome the Paradox and truly "powerdown". All other efforts- in situ- will likely lead to greater consumption levels...is this what you are driving at?
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PostPosted: Thu Jul 19, 2007 4:13 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

Thuja,

I think you have it bang on.

We are entering the era of declining overall available energy.

Therefore the only increases in productivity must be through more efficient use of energy.

Any increased productivity must be channelled into sustainable development.

This can only be done with binding international agreements.
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aflurry
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PostPosted: Thu Jul 19, 2007 5:57 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

MonteQuest wrote:
As we learned from this thread, Jevons Paradox - Death by conservation Jevons Paradox is not an argument against conservation or efficiency gains, it is a wakeup call to the reality of the expected results.


OK, I am probably missing something here, but it seems like that title "Death by conservation" is a misstatement. it should be "Death by efficiency without regard for conservation." Jevon's observation states that efficiency gains don't lead to conservation. Because the usage base expands to meet the greater availability, efficiency gains lead seemingly paradoxically (though actually not-paradoxically) to more fuel usage.

The thing is that conservation would begin by restricting the usage base directly. It does not necessarily mean greater efficiency within that usage base.

This important distinction between conservation and efficiency often goes overlooked. It is only by doing so that people regard Jevons Paradox as this inescapable doom law.

The Jevons scenario in fact says nothing about the effectiveness of conservation.


MonteQuest wrote:

The unexpected results being that all observed efficiency gains to date have led to increased consumption.


I think there have probably been many observable efficiency gains, but very few genuine conservation gains. We have yet to know the effect of a genuine, sustained conservation effort.


MonteQuest wrote:

How do we counter this?

Taxes lead to greater efficiency.

So does rationing.

How does one avoid the "rebound effect"?


OK, the tax argument is a possible basis for the "conservation leads to efficiency which leads to a rising usage base" argument. Though I don't find it all that strong... at most it may prove that by conservation efforts may leave you running in place because of the effect on prices. It doesn't show an increase in usage because as soon as you get back to the break-even point prices are back up to where they were.

But in any case, it's only half an argument. It neglects to discuss that the tax revenue needs to be put toward conservation initiative and public transportation. So even if you just broke even on taxation alone, you get gains on the conservation projects.

I don't understand the rationing argument. It may lead to greater efficiency but the efficiency can't increase consumption because consumption is rationed, remember? The only question is whther rationing would work. That is doubtful but it is a whole different issue.

MonteQuest wrote:

Seems that all gains must be directed at reducing efficiency????? LOL!


That's funny but it has a kernal of truth, and as usual "the market" is the sticky wicket.... The market is very good at pricing most thing, but it completely fails with natural resources that are at the same time abundant and irreplaceable. The market sees the abundance but not the irreplaceability. Because of this, a case can be made that the market prices oil far far far too low.

This is still a very tough problem. I don't think you can just "not have" the free market. The free market exists, whether it is legitimized or not, and controlling it always seems to have consequences that are difficult to predict.

But however difficult it is, the problem of effectively pricing all the externalities of oil consumption (including even peak oil) into the per bbl price is a huge step down from fighting this so-called paradox of the "Death by conservation."
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PostPosted: Thu Jul 19, 2007 6:29 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

aflurry wrote:
This important distinction between conservation and efficiency often goes overlooked. It is only by doing so that people regard Jevons Paradox as this inescapable doom law.


Again, Jevons' Paradox is not a law, it is a consistent observation of reality.

Both efficiency gains and conservation lead to greater supply, which lowers the price, thus increasing consumption.

The topic is not a debate of Jevons, but how to overcome the paradox.

Quote:
I think there have probably been many observable efficiency gains, but very few genuine conservation gains. We have yet to know the effect of a genuine, sustained conservation effort.


Sure we do. We called it the Great Depression.

Quote:
I don't understand the rationing argument. It may lead to greater efficiency but the efficiency can't increase consumption because consumption is rationed, remember?


Still, it would lower the price relative to what it would have been undoing any demand destruction that higher prices caused.

If gasoline were rationed, people would find new ways to use it more efficiently...doing more with less. Trying to grow.

We need to do the opposite.

We need to do less while having more.
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MonteQuest
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PostPosted: Thu Jul 19, 2007 6:48 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

thuja wrote:
Monte- is this a trick question? It is seemingly impossible to offset the Paradox in a "free market". Truly- only global ratification of binding international agreements to simultaneously reduce consumption levels is the only way one could overcome the Paradox and truly "powerdown". All other efforts- in situ- will likely lead to greater consumption levels...is this what you are driving at?


Not really. But, yes, how do we make China and India not consume what we conserve?

I guess my point is that...what if all gains from conservation and efficiency went to further both, rather than meeting demand?

The Green Revolution didn't solve the issue of world famine, it allowed for more growth.
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PostPosted: Thu Jul 19, 2007 7:12 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

It seems to me the answer is what the Puritans won't want to hear - we need an incredibly lazy, inefficient way of life, in which we produce virtually nothing beyond our needs for survival, and produce those in a way which doesn't require much, if any, non-living (human, animal, or plant) energy. This is so counter to our society, our culture, our historical values, as to be anathema to many, possibly most, people.
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PostPosted: Thu Jul 19, 2007 7:31 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

Ludi wrote:
It seems to me the answer is what the Puritans won't want to hear - we need an incredibly lazy, inefficient way of life, in which we produce virtually nothing beyond our needs for survival, and produce those in a way which doesn't require much, if any, non-living (human, animal, or plant) energy. This is so counter to our society, our culture, our historical values, as to be anathema to many, possibly most, people.


Yes, demands for increased efficiency only come from having exceeded the sustainable limits.

If our human footprint were sustainable, we wouldn't need to be more efficient.

No other life form plants crops.

Why must we?

For power.
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PostPosted: Thu Jul 19, 2007 7:41 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

MonteQuest wrote:
aflurry wrote:
I think there have probably been many observable efficiency gains, but very few genuine conservation gains. We have yet to know the effect of a genuine, sustained conservation effort.


Sure we do. We called it the Great Depression.
This is the processed food found at the south end of a north facing uncastrated bovine.

The great depression was caused by a disparity in monetary income and oversupply of goods. Rampant speculation produced artificial "wealth" and strong supply of goods. This led to a credit economy for low wage earners in the middle and lower class citizens. Eventually, production outstripped demand, stocks fell, jobs were lost, loans were defaulted on. Then the depression started, and then conservation and stretching what resources could be purchased began in earnest.

Asserting that conservation caused the depression is exactly opposite to what really happened.
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PostPosted: Thu Jul 19, 2007 8:23 pm    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

DavidFolks wrote:
Asserting that conservation caused the depression is exactly opposite to what really happened.


LOL! I guess that one was over your head.

Let me rephrase aflurry's comment.

"We have yet to know the effect of a genuine, sustained reduction in economic activity."

Which is the same as a "sustained conservation effort."

The effects are massive unemployment, loss of homes and businesses, and a scarcity of money.
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EnergyUnlimited
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PostPosted: Fri Jul 20, 2007 1:48 am    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

I had red all posts above.
My overall impression is that Jevon's paradox will be around, as long as we have free market economy and population growth.
Perhaps in environment of die off (natural population decline) we may temporary "suspend" its effects, as peoples will have some more important things to worry about, than mindless consuming of more and more.
Once die off is over Jevon's paradox will kick in again as long as market economy is still around...
In any case it is rather default situation.

Some possible solution would be in relentless increasing of taxes on natural resources in a kind of "elevator" scheme run ab infinitum, regardless of consequences to economy and well being of individuals. Such undertaking would have to be run worldwide.
Any state income from such taxation would be spend to facilitate transition to sustainable way of life, not to improve healthcare, education etc.
I would find it difficult to call such a setup "free market".

Again, actual chance of introducing such a scheme in existing civilization is next to nil.
So we are sentenced to follow Jevon's route in our relentless race to the bottom.

It is interesting observation that sustainable life is deeply against "man's hubris".
That is why all civilizations built by man are invariably collapsing. This one will not be an exception.
There is no realistic way out.
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PostPosted: Fri Jul 20, 2007 3:05 am    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

In a free market economy, the only way to offset Jevon's Paradox (and I realise that this will only be a very, very small offset) is to control how I use any benefits from conservation and efficiency that I receive. How I spend my money (or don't spend it) is one signal that I can give to the market.

Jevon's Paradox seems to work in well functioning markets, where if I do not buy someone else will. This also works well for items that are easily transported from one place to another. I don't have any academic papers to support this, but I suspect that the Paradox works less well in small populations where maybe surplus production can not be easily used, or where the system breaks down (eg crops rotting in the fields because not enough cheap labour is available locally to pick them). So in this I have a gut feeling that the best way to work on offsetting Jevon's Paradox is to support the process of re-localization.
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PostPosted: Fri Jul 20, 2007 5:46 am    Post subject: Re: How to offset Jevons' Paradox in a free market Add User to Ignore List Reply with quote

In the face of forever declining oil, isn't this whole Jervon's Paradox a moot point? Sure, we can conserve all we want, but one thing remains the same...there is less to go around, period.

I think the real question is whether we limit total consumption via market pricing (rich countries outbidding the poor ones, and within the rich nations, the rich people outbidding the poor ones) -or- institute a comprehensive rationing system that matches the rate of decrease of fossil fuel production. But the chances of something like this being enacted without a world government in place is probably tougher than trying to win the Mega Millions lottery. One country decides to conserve by rationing, another will surely take advantage of having that little bit more to use for their economic advantage. So market pricing it will be until we run short enough to actually bring down the global economy :/

Another point to consider is how to move society away from hydrocarbons for good...a total paradigm change if there ever was one. But this will not happen until we're deep into decline, as people in general aren't going to get off their duff with this until its affecting them directly. And we all know this isn't going to be a pretty picture...
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