Reply #7: I don't think that is actually a paradox, since [View All]

[kristopher]

I don't think that is actually a paradox, since in a complex system there is nothing in the concept of increased efficiency that implies reduced consumption.

And actually, that isn't what's at play here. It is a simple "what's cheaper" calculation. The savings on gas for a new better milage car don't equal the cost of the car. But it will factor in as price shock and ownership dissatisfaction, so people will tend to trade a little sooner and when they do trade they will consider mileage a much more important factor at $4 /gal than at $1/gal.

Long term use will decline significantly as more efficient alternatives are developed to meet demand.