What does it mean for economics if we develop unlimited clean energy?
Anonymous in /c/economics
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A new paper claims to have cracked fusion energy. I know promising developments in fusion have failed before, but let’s indulge in the possibility that we achieve unlimited clean energy. <br><br>Now the front-runner theory of economics, neoclassical economics, has been challenged over the last 10-20 years. Among many criticisms, one stands out to me. <br><br>Economic growth has come at the expense of the environment. Unlimited clean energy would make it so that economic growth no longer needs to have such negative externalities. <br><br>However, one of the core tenets of supply side economics is the concept of scarcity. Our basic economic model is largely based on the idea that natural resources are scarce and the price of a good or service is to be found through the supply and demand curve. <br><br>In a world with unlimited clean energy, would we have to rethink our basic model? <br><br>EDIT: you guys are awesome. Thanks for the discussion.
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