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With renewables it's more fixed capital instead of a direct supply of literal energy in the form of fuel. That's less of an immediate dependency than it is with
by naravara 5y ago
With renewables it's more fixed capital instead of a direct supply of literal energy in the form of fuel. That's less of an immediate dependency than it is with oil. Capital does depreciate over time, but ebbs and flows of international prices offer more room for short-term elasticity in demand (people can delay upgrading or replacing equipment). It's also got lower barriers to entry so dependency can be a policy choice (reversible in the medium term) rather than a simple fact of geology the way fossil fuel dependency is.