Jevons paradox

Creator
Creator
Seonglae ChoSeonglae Cho
Created
Created
2025 Jan 31 21:39
Editor
Edited
Edited
2026 Feb 25 17:35

Jevons effect

Technology
Technology
Development
leads to
Resource
Cost
optimization, which increases
Demand
rather than reducing
Resource
usage
When technology dramatically increases productivity in a specific industry, prices fall and quality improves. As a result, people consume much more, causing the overall industry size to actually grow larger.
The Jevons effect creates wealth, while the Baumol effect distributes that wealth throughout society.
 
 
 
 
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The Baumol Effect and Jevons paradox are related
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AI Doesn’t Reduce Work—It Intensifies It
One of the promises of AI is that it can reduce workloads so employees can focus more on higher-value and more engaging tasks. But according to new research, AI tools don’t reduce work, they consistently intensify it: In the study, employees worked at a faster pace, took on a broader scope of tasks, and extended work into more hours of the day, often without being asked to do so. That may sound like a win, but it’s not quite so simple. These changes can be unsustainable, leading to workload creep, cognitive fatigue, burnout, and weakened decision-making. The productivity surge enjoyed at the beginning can give way to lower quality work, turnover, and other problems. To correct for this, companies need to adopt an “AI practice,” or a set of norms and standards around AI use that can include intentional pauses, sequencing work, and adding more human grounding.
AI Doesn’t Reduce Work—It Intensifies It
 
 

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