Friday, February 4, 2011

Gonzaga's Macroeconomics Blog: Unattended Consequences

I'm reposting this from last semester:

This article reminds me of one of my favorite questions. Here's the question:

Suppose that, in an attempt to induce citizens to conserve energy, the government enacted regulations requiring that all air conditioners be more efficient in their use of electricity. After this regulation was implemented, government officials were then surprised to discover that people used even more electricity than before.

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