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Jevon's Paradox

Editorial: The Jevons Paradox Myth

By x344543 - IWW Environmental Union Caucus, April 6, 2023

As the climate crises deepens and the push to decarbonize the world's energy systems intensifies, a chorus of skeptical and pessimistic voices continually warns against placing hope in renewable energy as a solution (whether partial or wholly), arguing instead for vastly reducing energy consumption (as well as everything else). One of the most commonly invoked pieces of putative evidence made to bolster the argument is the oft cited, but poorly understood concept known as "Jevon's Paradox" (see also Wikipedia for a quick reference).

For example, in an article featured on the degrowth blog, Resilience (run by degrowth advocate Richard Heinberg), "Resources for a better future: Jevons Paradox", author Sam Bliss declares:

In 1865, (English economist William Stanley) Jevons found that as each new steam engine design made the use of coal more efficient, Britain used more coal overall, not less.

These efficiency improvements made coal cheaper, because steam engines, including the ones used to pump water out of coal mines, required less coal to produce a given amount of useful energy. Yet increasingly efficient steam engines made coal more valuable too, since so much useful energy could be produced from a given amount of coal.

That might be the real paradox: the ability to use a resource more efficiently makes it both cheaper and more valuable at the same time.

In Jevons’ time, more and more coal became profitable to extract as more and more uses of coal became profitable. Incomes increased as coal-fired industrial capitalism took off, and profits were continually invested to expand production further.
A century and a half later, researchers from the Massachusetts Institute of Technology found that as industrial processes have gotten more efficient at using dozens of different materials and energy sources, the overall use of these materials and energy sources has grown in nearly every case. The few exceptions are almost all materials whose use has been limited or banned for reasons of toxicity, like asbestos and mercury.

In an economy designed to grow, the Jevons paradox is all but inevitable. Some call it the Jevons phenomenon because of its ubiquity. Purposefully limiting ourselves might provide a way out.

This is by no means the only such example, nor is it even necessarily the most illustrative one, but it perfectly summarizes the all too often careless application of what is an overused and debatable trope.

There are several problems with Jevon’s Paradox and the way in which Bliss presents it:

Green growth vs degrowth: are we missing the point?

By Beth Stratford - Open Democracy, December 4, 2020

It’s time to stop talking past each other and unite against the real enemies of environmental justice.

The row about ecological limits to growth is back with a vengeance. On one side are those who are deeply sceptical about the idea of ‘infinite growth on a finite planet’. They argue that to be sure of offering a good life for all within planetary boundaries, we need to kick our addiction to consumption growth (in wealthy countries at least). These ‘green growth sceptics’ include those advocating for ‘degrowth’, ‘prosperity without growth’, ‘steady state economics’, ‘doughnut economics’ and ‘wellbeing economics’.

In the opposite corner are ‘green growth’ advocates who believe that the historical relationship between GDP and environmental impact can be not just weakened but effectively severed. For green growthers, the key to maintaining a habitable planet is decoupling — reducing the environmental impact associated with each pound or dollar of GDP. By deploying new technologies, and shifting the nature of our consumption, they argue we can do our bit for the environment while continuing to grow GDP, even in wealthy countries.

Green growth sceptics do not dispute the need for decoupling, but observe that the faster we grow the faster we have to decouple. Even a modest goal like 2% growth per year implies doubling the scale of consumption every 35 years. Unfortunately, we have never approached the rates of decoupling that would be necessary for rich countries to get back within their fair share of ecological space while maintaining that kind of exponential growth.

Green growth advocates tend to respond that the historical record shouldn’t be taken as a guide to what is possible in future. Pessimism about future technological breakthroughs will be self-fulfilling, they say.

For some this is a compelling and entertaining debate. But it is not going to be settled in a timeframe that is useful for maintaining a habitable planet. In the meantime, these adversaries are in danger of delivering a major own goal. Because the more time we spend in nerdy (and sometimes venomous) exchanges about decoupling, the less time we have to build the broad-based movement we need to take on the vested interests who benefit from the status quo.

The Industrial Workers’ Climate Plan: A Great Green Charter

By various - Bristol IWW, 2019

An ecology movement that once seemed jaded is budding and blossoming beautifully. The fantastic efforts of the school strikes’ movement and groups like Extinction Rebellion, Earth Strike and the Green Anti-Capitalist Front have forced green issues back into mainstream public debate. This achievement has been marked by declarations that there is a ‘climate emergency’, first by the Welsh and Scottish governments and then, fittingly on 1st May, by the UK Parliament. A fortnight earlier, the University of Bristol had become the first UK university to declare a climate emergency. So successful have these campaigns been that there is now a broad consensus that something must be done. It is essential to build on this achievement and keep up the momentum. We urgently need to continue the conversation about what do to now.

Alongside the general strikes for climate action in September 2019, Earth Strike is therefore proposing that a Great Green Charter would be a powerful rallying document for the environmental crisis of the Twenty-First Century. The nineteenth-century movement called Chartism inspired the idea of a Great Green Charter. The Chartists drew up clear and agreed points which they pursued with a mix of political, economic and cultural approaches. Chartism became the largest reform movement of its time, taken up by thousands of ordinary people across the United Kingdom. The Chartists were successful, in as much as most of the points listed on ‘The People’s Charter’ were eventually attained, and even exceeded. While this was not within the years of Chartism, and achieved only after great struggle, the Chartists defined the terms of political reform for the decades to come.

Read the report (PDF).

Does the transition to the Circular Economy on a global scale enhance mechanisms of intragenerational inequality?

By Sara Huier - International Development Studies and Global Studies, Roskilde University, April 2019

The study argues that the Circular Economy (CE) model often privileges the Global North economies’ standpoint, revealing a significant inadequacy. Therefore, the present research investigates the extent of the disparities in closed-loop strategies between developed and developing countries. The objective of the analysis is to understand whether these contingencies are relevant and whether they are the display of global economy dynamics that reinforce mechanisms of inequality, conflicting with the Sustainable Development rationale.

It is found that the analysis corroborates the existence of imbalanced drivers, opportunities, barriers and drawbacks between the Global North and the Global South, although potential benefits for the South are entailed. However, it also emerges the existence of critical transnational dynamics which may prevent the achievement of CE objectives globally. The existence of these overlooked and unaddressed global forces is identified as the actual problem of the CE model. Indeed, the narrow focus of the CE on production processes and local, national and regional dynamics diverts the attention from the Global Value Chains. Thus, it is recommended to analyse the global CE structure by applying the Global Value Chain framework, in order to investigate if it is possible to overcome the exposed CE’s limits.

Read the Report (PDF).

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