Editing Jevons paradox (section)

==Khazzoom–Brookes postulate==
{{Main|Khazzoom–Brookes postulate}}

In the 1980s, economists Daniel Khazzoom and Leonard Brookes revisited the Jevons paradox for the case of society's [[World energy consumption|energy use]]. Brookes, then chief economist at the [[United Kingdom Atomic Energy Authority|UK Atomic Energy Authority]], argued that attempts to reduce energy consumption by increasing [[Efficient energy use|energy efficiency]] would simply raise demand for energy in the economy as a whole. Khazzoom focused on the narrower point that the potential for rebound was ignored in mandatory performance standards for domestic appliances being set by the [[California Energy Commission]].<ref name=Saunders>{{cite journal|last1=Saunders|first1=Harry D.|title=The Khazzoom-Brookes Postulate and Neoclassical Growth|journal=The Energy Journal|date=October 1992|volume=13|issue=4|pages=131–148|jstor=41322471|doi=10.5547/ISSN0195-6574-EJ-Vol13-No4-7|s2cid=154484026 }}</ref><ref>{{cite journal|last=Herring|first=Horace|date=19 July 1999|title=Does energy efficiency save energy? The debate and its consequences|journal=Applied Energy|volume=63|issue=3|pages=209–226|issn=0306-2619|doi=10.1016/S0306-2619(99)00030-6|bibcode=1999ApEn...63..209H }}</ref>

In 1992, the economist Harry Saunders dubbed the hypothesis that improvements in [[Efficient energy use|energy efficiency]] work to increase (rather than decrease) energy consumption the ''Khazzoom–Brookes postulate'', and argued that the hypothesis is broadly supported by neoclassical [[Economic growth|growth theory]] (the mainstream economic theory of [[capital accumulation]], [[Technological change|technological progress]] and [[long-run]] economic growth). Saunders showed that the Khazzoom–Brookes postulate occurs in the [[neoclassical growth model]] under a wide range of assumptions.<ref name=Saunders/><ref name=Sorrell>{{cite journal|last1=Sorrell|first1=Steve|title=Jevons' Paradox revisited: The evidence for backfire from improved energy efficiency|journal=Energy Policy|date=April 2009|volume=37|issue=4|pages=1456–1469|doi=10.1016/j.enpol.2008.12.003|bibcode=2009EnPol..37.1456S }}</ref>

According to Saunders, increased [[Electrical efficiency|energy efficiency]] tends to increase energy consumption by two means. First, increased energy efficiency makes the use of energy relatively cheaper, thus encouraging increased use (the direct rebound effect). Second, increased energy efficiency increases real incomes and leads to increased economic growth, which pulls up energy use for the whole economy. At the [[Microeconomics|microeconomic]] level (looking at an individual market), even with the rebound effect, improvements in energy efficiency usually result in reduced energy consumption.<ref name=Greening>{{Cite journal | doi=10.1016/S0301-4215(00)00021-5 | surname=Greening| first=Lorna | title=Energy efficiency and consumption—the rebound effect—a survey |author2=David L. Greene |author3=Carmen Difiglio| journal=Energy Policy |volume=28 | year=2000 | pages=389–401 | issue=6–7 | bibcode=2000EnPol..28..389A}}</ref> That is, the rebound effect is usually less than 100%. However, at the [[Macroeconomics|macroeconomic]] level, more efficient (and hence comparatively cheaper) energy leads to faster economic growth, which increases energy use throughout the economy. Saunders argued that taking into account both microeconomic and macroeconomic effects, the technological progress that improves energy efficiency will tend to increase overall energy use.<ref name=Saunders/>