4 ms·
“fallacy”? Or just an edge case? Are you really claiming that increased electricity prices wouldn’t increase supply of electricity in the long-run?
by ghufran_syed 6y ago
“fallacy”? Or just an edge case? Are you really claiming that increased electricity prices wouldn’t increase supply of electricity in the long-run?
- dredmorbius 6y agoElectricity must be on 24/7/365. Brief periodic outages may be acceptable. Portions of Texas were without power for weeks. Because of predictable cold well within historical experience. The market as designed per "prices will induce supply" failed. And no price incentive will create gigawatts of generating capacity in minutes to hours. Just as nine women cannot make a baby in one month. Some processes require time and/or advanced planning.
- mechagodzilla 6y agoI think they are claiming that instantaneously and drastically increasing prices during an emergency effectively does nothing to incentivize supplies, because there are no additional supplies to be had, and that the right way to handle that is to heavily penalize failure to provide those supplies, and manage the risk proactively and in advance. So their solution would be more like raising the long term electricity supplies slightly, with incentives in place to make sure that failures like that don't occur in the first place.
- dredmorbius 6y agoCorrect.