The Coal Question - The Jevons Paradox

The Jevons Paradox

Given that energy depletion posed long-term dangers for society, Jevons analyzed possible mitigation measures. In so doing, he considered the phenomenon that has come to be known as Jevons paradox. As he wrote:

" It is wholly a confusion of ideas to suppose that the economical use of fuel is equivalent to a diminished consumption. The very contrary is the truth."

Jevons described the historical development of engine technology and argued that the great increase in the UK's consumption of coal was due to the efficiency (or "economy") brought about by technological innovations, with particular credit going to James Watt's 1776 invention of the steam engine. Like many innovations that followed, such as improved methods for smelting iron, greater economy broadened usage and led to increased energy consumption.

"Whatever, therefore, conduces to increase the efficiency of coal, and to diminish the cost of its use, directly tends to augment the value of the steam-engine, and to enlarge the field of its operations."

Jevons also considered and rejected other measures that might reduce consumption, such as coal taxes and export restrictions. Similarly, although he deplored the wasteful practice of burning away low quality coal at the mine site, he did not support conservation legislation.

An alternative that he did consider practical was tightened government fiscal policy, based on using tax revenue to reduce the national debt. Tightened fiscal policy would have the effect of slowing economic growth, thereby slowing coal consumption, at least until the debt was erased. Still, Jevons admitted that the overall impact of such a measure, even if it were implemented, would be minimal. In short, the prospect that society would voluntarily reduce consumption was dim.