Your concerns are valid, especially from a consumption-centric perspective. But let's think about it with a Seba lens and the RethinkX framework. While there are surely green supporters who may not always walk the talk, it's essential to understand the broader transformation at play. China, for instance, added 50% of global renewable energy in 2022. The sheer scale of such a transition is unprecedented. They are also the fastest nation transitioning to electrification.
This massive shift towards renewables isn't just a matter of virtue signaling; it represents a tectonic shift in energy economics. As Tony Seba would point out, once technology disruption reaches a tipping point, its adoption can become exponential. Clean energy, electric vehicles, and battery storage are all approaching, or have crossed, these thresholds. The argument about EVs currently being powered by coal is gradually phasing out.
As countries continue their rapid shift towards renewables, the grid's carbon intensity will decrease. Remember, every massive technological transition has its transitional challenges. The early automobiles were laughed at as they trudged through horse dung-filled streets, but we know how that turned out. Batteries, as you rightly noted, will play a pivotal role. Their costs have been dropping consistently, and their lifespans have been increasing. Innovations in battery technology are expected to make them more affordable and durable in the coming years.
Regarding the potential hike in petrol and diesel prices due to a collapse in economies of scale, it's a real concern. But here's the thing: as EV adoption increases, the demand for oil will decrease, forcing industries to diversify and innovate. It's a dynamic economic landscape. Lastly, the costs associated with renewable technologies like solar panels are front-loaded. While there's an initial cost, the benefits, both economically and environmentally, span decades. Maintenance and replacement costs, when averaged over these long periods, tend to be more favorable than continuing with our existing fossil fuel infrastructure.
In conclusion, while there are definitely challenges to be tackled, we're witnessing one of the largest technological and economic shifts in history. It's more than just being 'woke'; it's about reimagining our world for a more sustainable future. And if that drives LRS past $1.00, well, more power to the investors!
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