by Loki » Tue 21 Jan 2014, 22:36:36
$this->bbcode_second_pass_quote('Pops', 'I') always say that the demand side of supply and demand is made of desire plus ability to pay, in a supply constrained world then the real action comes on the demand side where a decrease in my desire increases somone elses ability to pay - or vice versa.
Within the confines of the Jevons' paradox, yes, your decrease in demand leads to a lower price, making it more affordable for other folks to increase their use of oil. But in a peak oil world, the price is determined as much by supply as it is demand, increasingly so as the resource diminishes.
Add a deflationary depression like the Great Recession, not to mention the fact that new sources of oil depend on high prices, and Jevons seems less and less relevant.
Jevons is one of my pet peeves, he's used far too often to argue against energy conservation (
good post at Think Progress on this). I don't mean to start an argument with you in particular, Pops, but I think it's relevant to the OP.
Speaking of which, the more I think about Holgrem's assertion about collapsing the economy, the more I agree with him to a degree. The more people drop out, at least partially, the bigger drag it will be on “the economy.” Will it be
the factor that leads to collapse? Obviously not. But there are already lots of drags on the economy (oil, droughts, superstorms, Ponzi finance, income maldistribution, Justin Bieber, etc.). Adding another one, however small, will help slow the economic growth engine. Jevons notwithstanding

A garden will make your rations go further.