> For the complete documentation index, see [llms.txt](https://earn.blink.sv/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://earn.blink.sv/chapter-602-bitcoin-and-economics-ii/602.04-lesson-jevons-paradox.md).

# 602.4 Lesson - jevonsParadox

**Screen:** jevonsParadox

**Headline:** Jevons Paradox

**Reward:** 3

**Text:** The Jevons Paradox is a phenomenon that occurs when we use more of a resource, even when we are using it more efficiently. This happens because increased efficiency often leads to lower costs, which can increase demand for the resource.

One example of this is the use of coal as an energy source. In the late 1700s, people thought that coal deposits were running out, but James Watt's steam engine made it possible to use coal more efficiently. This led to an increase in the demand for coal, even though it was being used more efficiently. The relationship between energy and money is also important to consider.

Some people have proposed using energy as a measure of value for money, but this has not been successful in practice. Bitcoin, on the other hand, uses a system called proof of work, which incentivizes people to use energy efficiently in order to earn rewards.

While some people criticize the use of energy in this way, it is important to remember that humans are constantly finding new ways to generate energy, and we should not assume that energy is a fixed or limited resource.

\=================================================================

## QUIZ

**Question:** What is the Jevons Paradox?

**Answer:** The phenomenon of increased consumption of a resource due to increased efficiency

**Feedback:** Correct! Well done, you have a firm understanding of the Jevons Paradox. Fun fact: The phenomenon is named after William Stanley Jevons, an English economist who first described it in the 19th century

**Correct:** true

**Answer:** A type of fruit named after an economist

**Feedback:** Wrong! Sorry, there is no such thing as a Jevons fruit. You'll have to find your sustenance elsewhere

**Correct:** false

**Answer:** A paradox that states that the more we have of something, the less we want it

**Feedback:** Sorry, that's not quite right. The Jevons Paradox actually states that increased efficiency can lead to increased consumption, not decreased desire for a resource. But hey, at least you're thinking paradoxically!

**Correct:** false

<figure><img src="/files/MyO1mgutVQLHh0AryFXC" alt=""><figcaption></figcaption></figure>


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