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THE Jevons Paradox Thread Pt. 2

Discuss research and forecasts regarding hydrocarbon depletion.

Re: Jevon's Paradox Explained

Postby bart » Thu 22 Jun 2006, 15:18:14

One problem with discussing Jevons Paradox is that we seem to want black & white answers. Either it is an eternal law or utterly incorrect.

According the the academic reports I've read and cited elsewhere, there have been few empirical studies of the Rebound Effect (the formal name for the Jevons Paradox). In those that have been published, the figures are variable (e.g. 20-70%) and the conclusions hedged with cautions.

The truth is that it is one tendency among many. Mr. Bill's economic analysis gives an interesting spin I hadn't thought of.

I agree with MQ's point that "conservation and capitalism are like oil and water, they do not mix," though I think I'd specify "uncontrolled capitalism built on rampant consumerism". I would guess the real answer will involve a combination of government control, culture change and markets.
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Re: Jevons Paradox - Death by conservation

Postby nth » Thu 22 Jun 2006, 15:21:29

$this->bbcode_second_pass_quote('gary_malcolm', '')$this->bbcode_second_pass_quote('nth', 'J')evons Paradox is irrelevant. It does not apply to shrinking resources. If you have 100 gallons of oil today and every day after that you will get 10% less gallons of oil, it will force you to conserve.


I believe this to be incorrect. We will use what is available, easy and/or cheap.
Society at large is not going to power down because the SPR suddenly shoots down to 5M gallons. There will still be gas at the station until the first time the delivery system fails and that is not conservation... that is privation.


Okay, call it deprivation.
It is similar to what I said.
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Re: Jevon's Paradox Explained

Postby dub_scratch » Thu 22 Jun 2006, 15:36:58

$this->bbcode_second_pass_quote('nth', '')$this->bbcode_second_pass_quote('dub_scratch', '
')
It would be far better if the US car fleet does not improve in MPG and having that fleet die with the American motoring way of life. We need some forms of inefficiency to force more worthwhile systemic energy efficiency.


So you want PO to hit sooner, so we change sooner.
You are assuming any change will be change for the better. I don't agree with that. Change maybe for the worse. More people will die of hunger and maybe even war. It is a judgement call.


Absolutely, PO sooner is better for humanity than a later PO date. The longer & higher we go up energy mountain the further and harder we have to come down. The best case would be to have oil peak not at the Hubert half of URR but much sooner. That situation would provide the signal to society to stop wasting oil (on cars mostly) while giving a lower rate of decline to invest in post petrol systems. The cornucopian promise that PO will be later would mean the transition will be much more difficult if true.

I hope oil is peaking right now. We need this crisis.
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Re: Jevon's Paradox Explained

Postby MrBill » Fri 23 Jun 2006, 03:04:15

$this->bbcode_second_pass_quote('dub_scratch', '
')Absolutely, PO sooner is better for humanity than a later PO date. The longer & higher we go up energy mountain the further and harder we have to come down. The best case would be to have oil peak not at the Hubert half of URR but much sooner. That situation would provide the signal to society to stop wasting oil (on cars mostly) while giving a lower rate of decline to invest in post petrol systems. The cornucopian promise that PO will be later would mean the transition will be much more difficult if true.

I hope oil is peaking right now. We need this crisis.


And with regards to alternatives, there is no guarantee that the next best alternative will be as good or as efficient as what it replaces? It is just the next best alternative. But the search for alternatives can also yield unexpected positive benefits as well. Many discoveries that became economically useful were made during the process of trying to solve another unrelated problem, or were built on seemingly useless technologies or processes that in themselves seemed to be dead ends. Lasers for example.

I am certainly not an expert on the energy return on investment of various energy alternatives, but for some processes where there is no viable alternative they will be indepensible. For example, bio-diesel may not have a great EROI now using existing processes, but who knows what break throughs in production efficiencies will come as post peak oil shifts into rapid decline? New enzymes, faster growing plants, and new species that grow under less ideal conditions on marginal land. Or in some cases even help to avoid soil erosion, are part of a crop rotation, or suck soil salts out of salinated lands.

And, if I have the only tractor in a village that runs on bio-diesel in a farming community, not only will my share of the harvest cover the cost of producing that bio-diesel, but the village will reorganize itself around my tractor, like gang harvesting in yesteryear or contract harvestors now, if the alternative is harvesting with draught power or thrashing grain by hand.

Only the availability of bio-diesel in the future, not its EROI today compared to fossil diesel, matters. Once the fossil diesel is depleted we move onto the next best alterative, even if that means lower productivity and falling standards of living. Certainly it takes less energy inputs, and less land, to covert grain into ethanol or produce bio-diesel than it does to return to an agrarian economy based on draught power. However, I am sure in some instances they will compete with one another or be another alternative. A horse is a good option if the alternative is walking 20 miles into town, although a bicycle has lower maintenance and doesn't eat part of your agricultural surplus in the process.

So the flip side of Jevon Paradox may be that as crude or coal are depleted their rising price and scarcity make other sources of energy more competitive, if the alternative is draught power for example. Even if it means reorganizing the means of production, through relocation for example.

Of course, part of that calculation is taking into account legacy investments, which may completely lose their value when the cost to service them outweighs their benefit. But even then an abandoned shopping mall is still worth its value in salvaged materials, and can be coverted to other uses such as factory farming, a granary, hay barn or even a livery stable. No one said its original investors or owners were guaranteed a positive return on their investment! ; - )
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Re: Jevon's Paradox Explained

Postby Battle_Scarred_Galactico » Fri 23 Jun 2006, 04:11:17

$this->bbcode_second_pass_quote('dub_scratch', 'A')bsolutely, PO sooner is better for humanity than a later PO date. The longer & higher we go up energy mountain the further and harder we have to come down. The best case would be to have oil peak not at the Hubert half of URR but much sooner. That situation would provide the signal to society to stop wasting oil (on cars mostly) while giving a lower rate of decline to invest in post petrol systems. The cornucopian promise that PO will be later would mean the transition will be much more difficult if true.

I hope oil is peaking right now. We need this crisis.



Agreed, that would be the best case. People then may even begin to understand how important oil is..

However, with all the demand for pushing fields to the limit, I don't see the decline being gentle at all.
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Re: Jevon's Paradox Explained

Postby dub_scratch » Fri 23 Jun 2006, 09:20:01

$this->bbcode_second_pass_quote('MrBill', '
')
So the flip side of Jevon Paradox may be that as crude or coal are depleted their rising price and scarcity make other sources of energy more competitive, if the alternative is draught power for example. Even if it means reorganizing the means of production, through relocation for example.



That may be true, that rising fossil fuel scarcity will make alternatives more competitive, but as long as fossil fuels are needed to make alternative energies-- and as long as those have a relatively low ERoEI-- the scaling up of those alternatives will have to accompany a serious downscaling of our uses for energy. In light of that, the best alternatives we have are systemic, not energetic. Bicycles and low-travel urban patterns are far better alternatives than biofuels and EVs.
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Re: Jevon's Paradox Explained

Postby nth » Fri 23 Jun 2006, 14:31:14

I do agree about the higher the harder we crash.
I think a long plateau would be the best. In that case, I am on the same boat. The sooner we peak and plateau is the best.

I was imagining a peak with an accelerated drop as most models I have seen here.
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Re: Jevon's Paradox Explained

Postby MrBill » Mon 26 Jun 2006, 03:04:17

$this->bbcode_second_pass_quote('dub_scratch', '')$this->bbcode_second_pass_quote('MrBill', '
')
So the flip side of Jevon Paradox may be that as crude or coal are depleted their rising price and scarcity make other sources of energy more competitive, if the alternative is draught power for example. Even if it means reorganizing the means of production, through relocation for example.



That may be true, that rising fossil fuel scarcity will make alternatives more competitive, but as long as fossil fuels are needed to make alternative energies-- and as long as those have a relatively low ERoEI-- the scaling up of those alternatives will have to accompany a serious downscaling of our uses for energy. In light of that, the best alternatives we have are systemic, not energetic. Bicycles and low-travel urban patterns are far better alternatives than biofuels and EVs.


You're right, and that is why at no point have I ever argued that we will be able to sustain the existing infrastructure that we have. Vice versa. We will likely be forced to gravitate to traditional clusters of economic activity such as existed in the past with farming communities, guilds, manufacturing located near atomic power sources, etc. People close to centers of production that have access to stationary energy run on geothermal, solar, wind, coal, nuclear and where bio-fuels can be produced.

Raw materials mined and processed near sources of energy rather than shipped to where labor is cheap for example. Mining landfills and recycling will become more cost effective as energy becomes more expensive and base metals more scarce. When you think about it, almost all the metals ever mined, and all the plastic ever produced, are sitting around somewhere? It has not disappeared at least if you believe the environmentalists?

If you switch to an energy source that is not as efficient as fossil fuels have been then you can no longer support a far flung supply chain management system that relies on cheap energy for inexpensive transport. Therefore, look to which cities and areas had a natural advantage in so far as trade patterns and look for these centers to regain some lost competitive advantage, if for example they are located on major rivers, lake heads, canals or deep water ports and are accessible by rail, which will remain the cheapest, most efficient means of transport after trucking for example declines, and JIT transport becomes a thing of the past replaced by larger cargos and more inventory delivered to central points.

And the flipside of that as someone like Kunstler might argue would be to abandon the burbs that are not close to anything and are energy intensive to maintain. However, so a certain degree I disagree. As we have seen for example in the change of landscape from Victorian England to the modern UK a lot of those large mansions that housed large families plus a domestic staff were subdivided and sold off into self-contained units and apartments as family sizes shrunk and keeping domestic staff became too expensive.

As much as some might not like it, many McMansions could be also turned into multi-family housing, serviced by commuter bus lines (again quite prevalent in and around London), if the economics supported such a shift or made the alternative simply to expensive for your average wage slave. That would be an intermediate step between commuting by auto and installation of light rail transit or in fact the buses might link to rail.

As a matter of fact even now I have colleagues who live 50-70 kms away from work that come into work everyday in a omnibus, that carries 10-passengers say, as it is cheaper than commuting by car. So it means changing lifestyle patterns and expectations. They then have to stick to a schedule and have less personal freeedom, but that is now a volunary trade-off whereas in the future it may be a economic necessity?
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Re: Jevons Paradox - Death by conservation

Postby tsakach » Sun 30 Jul 2006, 14:22:38

Compare Jevons Paradox with Parkisons Law, where:

"The demand upon a resource always expands to match the supply of the resource."

Parkisons Law seems to be more applicable where supply can not be increased. As an example, suppose you have a solar power system where a limit exists on production of electricity. In this case increased efficiency does not result in increased consumption, because you can't consume more energy than you have. A tendency exists to consume all the available energy, and conservation enables you to do more with what you have.

Jevons Paradox may occur when favorable supply conditions exist, such as the up side of the production curve. But it does not seem to apply when supply is contracting:

"Starting with a significant reduction in supply however (as in the case of Peak Oil), prices will go up, requiring an equally significant reduction in demand from increased efficiency just to maintain the status quo of price and therefore consumption."

wikipedia: Jevons Paradox
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Re: Jevons Paradox - Death by conservation

Postby MonteQuest » Sun 30 Jul 2006, 14:43:17

$this->bbcode_second_pass_quote('tsakach', 'J')evons Paradox may occur when favorable supply conditions exist, such as the up side of the production curve. But it does not seem to apply when supply is contracting:



(sigh)

This has been addressed ad naseum on several threads.

Jevon's Paradox says that increases in efficiency will result in a lower price relative to what it would have been, which increases it's consumption.

Relative to what it would have been otherwise.

If you increase the efficiency of energy use, you increase it's supply, relative to what it would have been. In a free market, when you increase the supply of somthing, the price goes down, relative to what it would have been.

When the price goes down, you increase consumption, relative to what it might have been....even in a declining supply scenario.

However, if supply declines faster than efficiency gains, then the price won't drop.

Which brings us back to the whole point: conservation and efficiency are not a peak oil solution by any measure. Only a very short-term stopgap.
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Re: Jevons Paradox - Death by conservation

Postby tsakach » Sun 30 Jul 2006, 16:32:57

$this->bbcode_second_pass_quote('MonteQuest', 'W')hen the price goes down, you increase consumption, relative to what it might have been....even in a declining supply scenario.


How can it be possible to increase consumption of something where consumption already matches supply, and the supply cannot be increased? Can you point me to an explaination of how this works?

$this->bbcode_second_pass_quote('MonteQuest', 'W')hich brings us back to the whole point: conservation and efficiency are not a peak oil solution by any measure. Only a very short-term stopgap.


While development of renewable resources and efficient use is not a solution to peak oil, it will make it possible to help mitigate the effects. Conservation and efficiency is a good thing. The US has fallen woefully behind in this area.
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Re: Jevons Paradox - Death by conservation

Postby Aaron » Sun 30 Jul 2006, 17:52:16

$this->bbcode_second_pass_quote('', 'H')ow can it be possible to increase consumption of something where consumption already matches supply, and the supply cannot be increased? Can you point me to an explaination of how this works?


Happy to...

You are correct that once demand reaches available supply that no further growth in consumption is possible.

What Jevon says is that you can't lower consumption through C&E.

Which means that all the C&E in the world won't decrease consumption.
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Re: Jevons Paradox - Death by conservation

Postby tsakach » Sun 30 Jul 2006, 18:32:58

$this->bbcode_second_pass_quote('Aaron', 'W')hat Jevon says is that you can't lower consumption through C&E.

Which means that all the C&E in the world won't decrease consumption.


Yes it makes sense that C&E does not decrease consumption. But since C&E enables more value to be derived from the commodity, it effectively becomes a substitute for part of the consumption. So the value of C&E is comparable to the value of the commodity.
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Re: Jevons Paradox - Death by conservation

Postby MonteQuest » Sun 30 Jul 2006, 19:34:13

$this->bbcode_second_pass_quote('tsakach', ' ')How can it be possible to increase consumption of something where consumption already matches supply, and the supply cannot be increased? Can you point me to an explaination of how this works?


It's called gains in efficiency. You use less to do the same thing, thus increasing supply, which lowers the price relative to what it would have been and encourages consumption back up to the limit and the price increases once more.

$this->bbcode_second_pass_quote('', 'W')hile development of renewable resources and efficient use is not a solution to peak oil, it will make it possible to help mitigate the effects. Conservation and efficiency is a good thing. The US has fallen woefully behind in this area.


Like I said, for a short period, otherwise Jevon's Paradox takes over or population growth eclipses all your gains.

Conservation is a self-induced recession. Declining economic activity.

I'[m not saying we shouldn't do this, but we have to recognize the pitfalls under our current system. We must increase the price as we institute efficiency gains.
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Re: Jevons Paradox - Death by conservation

Postby nth » Mon 31 Jul 2006, 17:19:30

$this->bbcode_second_pass_quote('MonteQuest', '
')
Conservation is a self-induced recession. Declining economic activity.


That is exactly what Jevon concluded.
No matter how efficient technology can be. You will end up living in mediocrity.
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Re: Jevons Paradox - Death by conservation

Postby tsakach » Thu 03 Aug 2006, 02:19:36

I will search for evidence that refutes Jevons Paradox.
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Jevons Paradox Debunked

Postby tsakach » Fri 04 Aug 2006, 15:26:12

{merged by MQ}

$this->bbcode_second_pass_quote('Aaron', 'W')illiam Stanley Jevons (1835-1882) is best known as a British economist who was one of the pioneers of contemporary neoclassical economic analysis, with its subjective value theory rooted in marginal utility.

Chapter Seven of The Coal Question was entitled "Of the Economy of Fuel." Here he argued that increased efficiency in using a natural resource, such as coal, only resulted in increased demand for that resource, not a reduction in demand. This was because such improvement in efficiency led to a rising scale of production. "It is wholly a confusion of ideas," Jevons wrote


Researchers from Berkeley Lab's End-Use Energy Forecasting Group and UC Davis published an assessment of the success of many of the major long-term energy forecasts published in the United States dating back to the 1960s.

$this->bbcode_second_pass_quote('Jon Koomey', '"')Our basic conclusion," says Koomey, a scientist in the Environmental Energy Technologies Division and leader of Berkeley Lab's End-Use Energy Forecasting Group, "is that forecasters in the 1950 to 1980 period underestimated the importance of unmodeled surprises. One of the most important examples is that they failed to foresee the ability of the United States economy to respond to the oil embargoes of the 1970s by increasing its energy efficiency. Not only were most forecasts of that period systematically high, but forecasters systematically underestimated uncertainties."


$this->bbcode_second_pass_quote('Paul Craig', '"')Energy use turned out to be lower than was considered plausible by almost every forecaster," says Craig. "Forecasters didn't anticipate the ability of the economy to limit the growth of energy use." Forecasts conducted after the first shocks in 1973 did not predict the ability of the economy, ranging from energy-intensive industries and small businesses to homeowners, to respond to higher prices by adopting more energy-efficient technologies and practices.

Image
[sub]Projections of total U.S. primary energy use, made in the 1970s. When these are compared to actual use at the end of the century, it is clear that forecasters didn't anticipate the ability of the economy to limit the growth of energy use.[/sub]

The 2000 actual end use graph shows a decrease in the growth rate of energy use, which occurs while energy efficient technology and conservation practicies are adopted. When compared to economic data, it also shows that energy growth no longer tracks economic growth due to adoption of energy efficient technologies and practices.

$this->bbcode_second_pass_quote('Jon Koomey', '"')Forecasts that assumed continuance of historic relations between economic and energy growth were grossly wrong,"

Jevons Paradox is one such example of a forecasting method that is reliant on historic relations. The energy end-use evidence shows that Jevons Paradox is grossly wrong like many other forecasting methods of this type.

From: "What can history teach us about forecasts of energy use?", Berkeley Lab
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Re: Jevons Paradox Debunked

Postby emersonbiggins » Fri 04 Aug 2006, 16:05:43

The U.S. economy is not a closed system the last time I checked. Energy inefficiency merely got offshored in the form of a declining domestic manufacturing base during that period. Pair that with a nebulous determination of economic activity, GDP, and we can see the "truth telling" that is taking place here.
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Re: Jevons Paradox Debunked

Postby Aaron » Fri 04 Aug 2006, 16:24:46

$this->bbcode_second_pass_quote('', '"')Our basic conclusion," says Koomey, a scientist in the Environmental Energy Technologies Division and leader of Berkeley Lab's End-Use Energy Forecasting Group, "is that forecasters in the 1950 to 1980 period underestimated the importance of unmodeled surprises.


A fair & interesting idea which deserves it's day in court I think.

But then he writes:

$this->bbcode_second_pass_quote('', 'O')ne of the most important examples is that they failed to foresee the ability of the United States economy to respond to the oil embargoes of the 1970s by increasing its energy efficiency.


Gotta be a grad student wrote this.

At least somebody who was not there at the time.

Demand destruction was the energy saver... not vastly greater efficiency. This is well established & not in dispute... google it.

Remember that this embargo represented only a few weeks missing 5% of our imported oil.

Jevon's "model" allows for the idea of economic boundaries to production & consumption. Rather Jevon says that within an economic context, conservation & efficiency don't lower consumption in the long run.

$this->bbcode_second_pass_quote('', '"')Energy use turned out to be lower than was considered plausible by almost every forecaster," says Craig. "Forecasters didn't anticipate the ability of the economy to limit the growth of energy use." Forecasts conducted after the first shocks in 1973 did not predict the ability of the economy, ranging from energy-intensive industries and small businesses to homeowners, to respond to higher prices by adopting more energy-efficient technologies and practices.


I can reference specific passages from Jevon & other period economists who incorporate economic limits to growth in their calculations.

Followed by the same unproven assertion about efficiency, and it's impact.

All I can say is... Can I buy some pot from you?

Of course economic factors dictate the boundaries for fluctuations in demand, and to some extent supply. Jevon only says that intentional conservation & efficiency won't lower your actual consumption, from what it would have been otherwise.
The problem is, of course, that not only is economics bankrupt, but it has always been nothing more than politics in disguise... economics is a form of brain damage.

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Re: Jevons Paradox Debunked

Postby Gridlock » Fri 04 Aug 2006, 16:35:15

Does Jevon's paradox apply once Government rationing is imposed?
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