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Miscellaneous·2025·Easy

The history of renewable energy suggests there is a steep learning curve, meaning that, as more is produced, costs fall rapidly because of economies of scale and learning by doing. The firms' green innovation is path-dependent: the more a firm does, the more it is likely to do in the future. The strongest evidence for this is the collapse in the price of solar energy, which became about 90% cheaper during the 2010s, repeatedly beating forecasts. Moving early and gradually gives economies more time to adjust, allowing them to reap the benefits of path-dependent green investment without much disruption. A late, more chaotic transition is costlier. Which one of the following statements best reflects the central idea of the passage ?

The history of renewable energy suggests there is a steep learning curve, meaning that, as more is produced, costs fall rapidly because of economies of scale and learning by doing. The firms' green innovation is path-dependent: the more a firm does, the more it is likely to do in the future. The strongest evidence for this is the collapse in the price of solar energy, which became about 90% cheaper during the 2010s, repeatedly beating forecasts. Moving early and gradually gives economies more time to adjust, allowing them to reap the benefits of path-dependent green investment without much disruption. A late, more chaotic transition is costlier. Which one of the following statements best reflects the central idea of the passage ?

Options

  1. a.

    Economies of scale is essential for transition to green growth.

  2. b.

    Modern technological progress is intensely linked to path-dependent innovations.

  3. c.

    Countries with large economies are in better position to adopt green technologies.

  4. d.

    Timing plays a crucial role in the case of green technology development.

    Correct answer

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