In economics, the Jevons paradox (/ˈdʒɛvənz/; sometimes Jevons effect) occurs when technological progress increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the rate of consumption of that resource rises because of increasing demand.[1]
.. In 1865, the English economist William Stanley Jevons observed that technological improvements that increased the efficiency of coal-use led to the increased consumption of coal in a wide range of industries. He argued that, contrary to common intuition, technological progress could not be relied upon to reduce fuel consumption.[4][5]
.. Jevons observed that England‘s consumption of coal soared after James Watt introduced the Watt steam engine, which greatly improved the efficiency of the coal-fired steam engine from Thomas Newcomen‘s earlier design. Watt’s innovations made coal a more cost-effective power source, leading to the increased use of the steam engine in a wide range of industries. This in turn increased total coal consumption, even as the amount of coal required for any particular application fell. Jevons argued that improvements in fuel efficiency tend to increase (rather than decrease) fuel use, writing: “It is a confusion of ideas to suppose that the economical use of fuel is equivalent to diminished consumption. The very contrary is the truth.”[4]
Three Turbocharged Cars Under $50,000 That Deliver Epic Kick
your car’s engine. Probably unbeknownst to you, it’s been steadily shrinking, year after year. You may not have noticed because, as automobile engines have gotten smaller, they’ve also gotten stronger.
.. Behold the wonders of turbocharging, the technical foundation for the next generation of power-dense, efficient and emissions-friendly automobile engines.
.. First developed to make fast cars go faster, turbocharging has evolved to help car makers meet rising global fuel-economy standards.
.. The Chevrolet Malibu Premier sedan ($31,850) makes a furious 250 hp. That’s about all you could reasonably expect out of a Chevy small-block V8 (5.7 liters) back in the day. Not to mention double the fuel economy with about a zillionth the emissions.
.. The 2017 Mustang can be ordered with the 2.3 EcoBoost, with a hard-punching turbo-four that makes more power and torque (310 hp and 320 lb-ft) than Mustang’s non-turbo’ed V6 engine—with about 14% better fuel economy.
.. the Mercedes-AMG CLA45. .. 2.0-liter inline four, soaring to 375 hp at 6,000 rpm and 350 lb-ft of torque. That’s enough leverage to launch the 3,450-pound premium sedan to 60 mph in a mere 4.1 seconds. With only two liters of California-legal displacement (EPA rated at 23/30 mpg, city/highway)
The Auto Industry: Mexico & Fuel Economy Standards
The Journal editorial board points out that there are policy moves that can be made to reduce the incentive to produce small cars in Mexico – namely corporate average fuel economy standards and trade deals that help American exports.
It’s true that auto makers have shifted production of small cars to Mexico, where wages are about 85% lower than in the U.S. But small cars aren’t profitable to make in the U.S., though they are necessary to meet the Obama Administration’s increasingly onerous fuel-economy mandates.
Some brave soul should also tell Mr. Trump that auto makers have moved production in Mexico because of its free-trade deals that provide better access to global markets. Mexico has 10 trade deals with 45 countries including the European Union and Brazil, which make up half of the global car market. The U.S. has 14 agreements with a mere 20 countries.
.. The bailout did work, for everyone except the taxpayers, who lost $10.5 billion.