lower some consumption, specifically by those with low incomes, it also inceases the value, and hence the desirability of energy. Energy starts to acquire the status of a luxury item, playing into all those narratives about wealth and status and signifying success and virility. Saving energy, conversely, starts to equate with wimpishness and calvinistic austerity. … energy electricity power crisis global warming climate change evolution evolutionary economics psychology value desire …
A Natural Evolutionary Approach
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Thats true, but if you had two identical t-shirts one priced at £10 and another priced at £100, people would probably select the more expensive variant; either to be seen as more wealthy by peers, or perceiving that the higher priced item somehow has more value, similar to designer clothes.
I’d agree with you on the most part, and the final idea you propose on rationing is quite relatively harmless and ideal. But one of the first principles you learn as an economics major is that cost does not equal value to the consumer. I’d recommend reading the novel ‘The price of everything’ by Russell Roberts if you have time for a short read and want to get a unique insight on economics. Thanks for sharing this vid
If I took a dump and lacquered it and put a price tag on it for $20,00 would its ‘value’, or consequently, its desirability go up? Of course not. Price is a reflection of value and desirability and not the other way around. Energy is valuable enough on its own.
I was raised as a pragmatist by my father. To me the idea that something is more valuable just because it costs more money is ludicrous. Often I find myself admiring simple and inexpensive solutions to problems that forgo the complexity and expense of often more sought after solutions. Great video though. It’s an interesting insight.
That’s it, many thanks.
You Don’t Exist: watch?v=KbYtRmxh8q0
=/ well supply and demand is fairly established. As long as there is elasticity a higher price does often times reduce consumption.
I say this, but I don’t think your wrong. As long as some things are associated with wealth, and people desire to be wealthy, those people will desire those things as well…
Interesting proposal, I would be curious as to the results.