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      Question

      What is the "Rebound Effect" (or Jevons Paradox) in the

      context of environmental policy?
      A When a tax on pollution leads to an immediate decrease in emissions. Correct Answer Incorrect Answer
      B When improvements in resource efficiency lead to an increase in the total consumption of that resource. Correct Answer Incorrect Answer
      C When a country's GDP growth leads to a natural decline in pollution. Correct Answer Incorrect Answer
      D The tendency for green energy prices to bounce back after a subsidy ends. Correct Answer Incorrect Answer

      Solution

      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.

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