According to Wikipedia, Jevons Paradox states that "as technological improvements increase the efficiency with which a resource is used, total consumption of that resource tends to increase, rather than decrease." From what I read, the Paradox does not apply to all resources, but I was wondering if it applies to gasoline (especially in developing countries where the price elasticity of fuel tends to be higher). Also, if fuel efficient cars increase fuel consumption, is there a pro-environment justification for increasing fuel efficiency without curbing emissions per gallon of gasoline?
Correction: I meant to say that in developing countries the price elasticity of personal transportation (cars, motorcycles, etc.) tends to be higher.
If you make cars and you indroduce a technological improvement to one process, this department will get a cheaper output and the price of the product will eventually decrease. The consumption of that resource will be limited by other inputs and Jevons Paradox will not apply.
It´s true that general technological improvements decrease costs and prices and if elasticity is greater that 1, people will buy more goods. A general technological improvement involves all parts of the car, not only engines or wheels or electronic systems and from a social, mankind point of view, the way roads are made can be also considered. An improvement in roads engineering will eventually decrease total social costs of transportation.
What governments do to avoid an increase in consumption is to charge taxes on petrols and cars. The difference between prices of cars and fuel in different countries obey to different taxes charged. In some countries highways are private and you have to pay an amount of money to use them.
An environmental reason is always present to discourage the use of cars.