Suggested Solution
In order to ensure that efficiency enhancing technological improvements actually reduce fuel use, the ecological economists Mathis Wackernagel and William Rees have suggested that any cost savings from efficiency gains be "taxed away or otherwise removed from further economic circulation. Preferably they should be captured for reinvestment in natural capital rehabilitation." This can be achieved through, for example, the imposition of a green tax, a cap and trade program, or higher fuel taxes.
Read more about this topic: Rebound Effect (conservation)
Famous quotes containing the words suggested and/or solution:
“It would be easy ... to regard the whole of world 3 as timeless, as Plato suggested of his world of Forms or Ideas.... I propose a different view—one which, I have found, is surprisingly fruitful. I regard world 3 as being essentially the product of the human mind.... More precisely, I regard the world 3 of problems, theories, and critical arguments as one of the results of the evolution of human language, and as acting back on this evolution.”
—Karl Popper (1902–1994)
“To the questions of the officiously meddling police Falter replied absently and tersely; but, when he finally grew tired of this pestering, he pointed out that, having accidentally solved “the riddle of the universe,” he had yielded to artful exhortation and shared that solution with his inquisitive interlocutor, whereupon the latter had died of astonishment.”
—Vladimir Nabokov (1899–1977)