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.

QUESTION

CSAT

Medium

Comprehension

Prelims 2025

Which one of the following statements best reflects the central idea of the passage?

Select an option to attempt

Explanation

Option A is incorrect: While the passage mentions “economies of scale and learning by doing,” these are supporting ideas. The main emphasis is on how timing and gradual adoption influence the cost and success of the green transition.

Option B is incorrect: The passage refers to “path-dependent innovation,” but this concept supports the central idea rather than defining it. The key message is that early, sustained investment in green technology yields better outcomes than delayed action.

Option C is incorrect: There is no comparison between large and small economies or any suggestion that economic size determines success in adopting green technologies. Hence, this assumption goes beyond the scope of the passage.

Option D is correct: The author explicitly states that “moving early and gradually gives economies more time to adjust,” whereas “a late, more chaotic transition is costlier.” This shows that timing is the decisive factor in ensuring an efficient and less disruptive transition to green technologies.