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What is the "Rebound Effect" (or Jevons Paradox) in the context of environmental policy?

Q: Answer-What is the 'Rebound Effect' (or Jevons Paradox) in the context of environmental policy?

As a process becomes more efficient, the cost of using that resource falls, which can lead to higher overall demand, potentially negating the initial environmental gains.

A When a tax on pollution leads to an immediate decrease in emissions.

B When improvements in resource efficiency lead to an increase in the total consumption of that resource.

C When a country's GDP growth leads to a natural decline in pollution.

D The tendency for green energy prices to bounce back after a subsidy ends.

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What is the "Rebound Effect" (or Jevons Paradox) in the context of environmental policy?

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