Question

Energy bill needs compromise on renewables WASHIINGTON (AP) Democratic leaders working package on an energy bill were try-t appears Congress may miles per gallon by 2020. ing to forge compromises Monday to increase the use president cannot sign, Allan increase in the federal vehi ment of renewable fuels both inubbard, director of thefu standard in 32 years. by the House for utilities cars and by electric utilities after reaching a deal earlier nomic Council wrote House, unless agreements on the dectne ty from renewable that would raise vehicle fuel Speaker Nancy Pelosi andother thorny issues are economy by 40 percent. taxes as part of the energy ing automakers to boost the duce their power. average fuel economy to 35 Pelosi, D-Calif, is described as adamant in" intend to produce a bill theIt would be the first ent's National EcoBut it won't become law to produce 15 of their Senate Majority Leader worked out. The plan is for a But they also faced another Harry Reid He urged them House vote on the compro-lobbied thorny issue: how to coverto work with the a up to $3 million a year intion to pass a bill acceptable the Senate taking up thefuture growth of solar, wind ost revenue if motorists mise bill on energy package perhaps with to the White House. the and other less gas because of theWith motorists irate about following weck more fuel efficient cars and $3-plus gasoline and recordAmong the most conten-argue utilities in the House and Senate Demomuch renewable fuel SUVs, meaning less reve-high winter heating bills, tious matter concerns howa feast and parts of the wouldn't be able to meet the inue for highway upkeep and construction: wind, solar power or biofuels requirement without - utilities should use to pro- the price of eleetricity cratic leaders hoped to pass Congressional rules require, their energy bill before any revenue losses from new departing for the Christmas legislation to be offset withrecess new revenues, so They took a giant step will have to craft a tax packtoward that by reaching a age to deal with the shortfall. compromise with Rep. John Meanwhile, the WhiteDingell. D-Mich, chairman House expressed concern of the Energy and Commerce over the renewable füels to efficiency proviprotector of the auto indus- try late last Friday on requir sions and at the hint of 3. The Economics of Energy Efficiency (5 points) a. From the article The Energy Efficiency Dilemma, state the basic idea behind the Jevons Paradox. (2 points) Your answer must be specific and you must include one historical example to put this concept into a clear context. Be sure to use some economic language and economic reasoning in your answer as well. b. Briefly explain the basic reason why even if people use less energy for a particular use as a result of increased energy efficiency, how this could result in higher energy use rather than less. (3 points) This question is addressing the rebound effect outside of a particular category of energy use. Your answer should be thoughtful and complete. Be sure to use some economic language and economic reasoning. You must include at least one specific example to support your answer.

Answer 1

Answer a:-

Jevons paradox is often called as Jevons effect when government's policies or the technological increament or called as progress increases the efficiency with which the particular resource is used, but the rate of consumption of that particular resource increases due to increasing demand.

The basic idea behind the Jevons Paradox from the article is that in energy conservation policy Jevons warnedthat fuel efficiency increament leads to increase the use of fuel. It is sometimes used argue that energy conservation efforts are pointless. It also give a turn to that increased efficiency by itself may not fuel use that sustainable energy must depends on the other types of government interventions as well. To proof and ensure that the efficiency technological decreases fuel use, and efficiency increaments can be related with government interventions that reduces demand. The jevons is mostly known in environmental economics. Further inprovements in fuel efficiency leads to more use of fuel. The demand of a things should be elastic in this paradox.

Thus the ideas behind the whole plot is defined by the use of energy and resources.