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I'm not sure how to unpack this. If there isn't energy scarcity, why does petroleum cost money? Scarcity isn't just a question of production, but also one of co
by Silfen 11y ago
I'm not sure how to unpack this. If there isn't energy scarcity, why does petroleum cost money? Scarcity isn't just a question of production, but also one of consumption. With some goods (e.g. food), we could reach a point where the entire population of the world cannot consume more. With others (energy is a salient example), there seems to be no upper limit on consumption. There will always be a finite amount, and people want to use it differently. This is exactly the problem markets are purported to solve.