We generally understand efficiency when considering different options to the same problem, for example, how to get from point A to point B, by running, driving, or flying. One method will use more energy than the others and will therefore be less efficient. One refrigerator will chill the same amount of food as another and use less energy and will therefore be more efficient.

We also implicitly understand a trade-off between time and energy (less time to do the same task usually requires more energy). But, when we start to compare different activities, say having steak for dinner versus buying a DVD player or taking a 3-day vacation versus buying a new bicycle we often lack the information to compare the overall efficiency between the two different options in terms of energy or materials or really any possible standard that might interest us. Read the rest of this entry »

Discussions and debates on the merits of various forms of monetary policy–usually relatively technical–have invaded even the mainstream news media of late. One idea often advocated is a return to the “gold standard”, a form of monetary policy in place (although not continuously) sometime after the invention of paper currency until about the 1930′s depending on what country you happened to live in at the time.

While the advocacy in favor of or against a gold standard is often intense (especially in certain circles in the United States and the United Kingdom) specifics on the mechanics and policy implications of implementing such a system are often lacking. Read the rest of this entry »

How Conservation and Efficiency Can Sometimes Increase Consumption

Conservation and efficiency are always good, right? Unfortunately, not always.

Many of us, myself included, consider ourselves conservationists. We don’t buy or take things that we don’t need (for example, lots of extra paper napkins at the restaurant). We consider the energy efficiency of our vehicles, appliances, and other things we use in our homes. And, in principle, we are in favor of measures that encourage everyone to conserve more like recycling. But, things don’t always turn out as we expect, and we must be diligent that our conservation measures don’t end up resulting in more consumption than would otherwise have occured.

There are several causes and conditions for this type of occurence, and most involve market economics. To illustrate my point with an example, let’s consider a few potential conservation regulations that could be enacted by a municipal government. Read the rest of this entry »