Michael Giberson Tom Konrad explains, "When it Makes Sense to Worry About Jevons Paradox, and When it Doesn’t." Konrad highlights the critical point - whether demand for the good in question is elastic or inelastic - and suggests that the demand for electric power is relatively inelastic and therefore the demand for lighting is inelastic, hence reductions in the cost of lighting will not lead to more that proportionate increases in the quantity of lighting consumed.
When to Worry About the Jevons Paradox
Michael Giberson Tom Konrad explains, "When it Makes Sense to Worry About Jevons Paradox, and When it Doesn’t." Konrad highlights the critical point - whether demand for the good in question is elastic or inelastic - and suggests that the demand for electric power is relatively inelastic and therefore the demand for lighting is inelastic, hence reductions in the cost of lighting will not lead to more that proportionate increases in the quantity of lighting consumed.