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I don't know if we're already at diminishing returns, but to estimate that you need to compute the economic returns, not just the conversion efficiency. As yea
by danmaz74 10y ago
I don't know if we're already at diminishing returns, but to estimate that you need to compute the economic returns, not just the conversion efficiency.
As yearly production escalates, even small increases to the "conversion efficiency"/"production cost" can yield high total returns on the investment.
- jacquesm 10y ago> As yearly production escalates, even small increases to the "conversion efficiency"/"production cost" can yield high total returns on the investment. It won't matter. Investment is hardly ever looked at in terms of total returns but only in terms of annual ROI as a percentage of the original outlay.
- danmaz74 10y agoBy "total" returns I didn't mean "lifetime" returns, but returns on the whole production to which the new technology can be applied (be it yearly, monthly, or whatever). My point is that, if we're building (or upgrading) bigger and bigger production plants, even a small improvement to the process can bring in big annual ROI.