UPSC Civil Services 2025 Prelims General Studies Paper II

Passage - 2
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.