Automobile manufacturers have been working for decades on improving fuel efficiency. So why aren’t the cars we drive today getting dramatically better gas mileage? Underlying that question is a fascinating paradox about energy consumption writes Ronald Bailey.
The money saved from driving a fuel-efficient car, for example, may now be spent on flying to a Caribbean beach vacation. Compounding rebound effects throughout the economy can lead to so much additional energy use that the net result of improved efficiency is higher consumption.