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The world isn't flat: countries that have to import fossil fuels will be far more interested in developing this technology even if the resulting product costs m
by photochemsyn 3y ago
The world isn't flat: countries that have to import fossil fuels will be far more interested in developing this technology even if the resulting product costs more than the imports because of the energy security issues related to being dependent on imports for something as important as energy supply.
In contrast, countries that earn large amounts of revenue from exporting fossil fuels will be much less interested in developing a technology that will end up making their exports worthless if optimized (especially as fossil fuel extraction costs rise).
That's not even mentioning the issue of hidden externalities not directly reflected in the cost of fossil fuels, massive state subsidies to fossil fuel producers that result in lower consumer costs, and so on. The conclusion is that the global energy market isn't some idealized economic model, it's highly controlled and manipulated and ignoring this reality is disingenous at best.
- usrusr 3y ago> In contrast, countries that earn large amounts of revenue from exporting fossil fuels will be much less interested in developing a technology that will end up making their exports worthless if optimized Usually, when your product is about to be replaced by something different, you want to be the one who makes that new different thing. Everybody who isn't depending on selling the old one has a little less incentive to be the one supplying the replacement. For all others, not investing in the new thing has lower opportunity cost than for exporters of the old thing. So from a game theory perspective, the incumbents can and will outspend others in investment in the new thing. Unless they don't try.