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> You can say that eventually we'll run out of [resource] but as we do the price goes up making alternatives more attractive. The sustainability part is one of
by DistractionRect 2y ago
> You can say that eventually we'll run out of [resource] but as we do the price goes up making alternatives more attractive. The sustainability part is one of the most powerful signals captured by price.
That's true, but only if we're running into short term shortages or it's actually becoming scarce due to depletion. It's possible for a resource to be finite but bountiful over large time scales.
Renewable/sustainable resources usually have a large infrastructure cost, have yet to benefit from decades of process refinement, and until they've capture a significant market share can't reap the benefits of mass production.
So it's expected that new sustainable methods will cost more until they catch up. There's vertical and horizontal integration efficiencies to work out, there's supply chains to optimize, production methods to scale and optimize, market share to capture, etc. If anything, I'm skeptical of things claiming to be better cheaper overnight successes - it's too good to be true.