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inefficiency

How Increased Inefficiency Explains Falling Oil Prices

January 1, 2015 by Gail Tverberg
8

Inefficiency and Oil Prices

Since about 2001, several sectors of the economy have become increasingly inefficient, in the sense that it takes more resources to produce a given output. I believe that this growing inefficiency explains both slowing world economic growth and the sharp recent drop in prices of many commodities, including oil.[read more]

On the Inefficiency of Fuel Efficiency Standards

February 11, 2014 by Meredith Fowlie
1

Inefficient Efficiency Standards

Imagine you have just been pulled over for exceeding the speed limit. The officer explains that the penalty for speeding decreases with engine size. Why? Because it is relatively more difficult for drivers of high performance cars to exercise restraint and drive the speed limit. What?![read more]