More evidence that renewables are getting cheaper

From MSNBC:

Describing itself as “the first automaker to enter into solar cell business,” Honda Motor Co. said on Monday it plans to start mass-producing solar cells in 2007...

Why? Ladies and gentlemen, I present to you the economic model of transition to alternative fuels.

a)  Increasing prices for fossil fuels increases the demand for substitutes--because they become relatively cheap:

...eyeing growing demand for environmentally friendly energy sources.

and,

b) technological innovations, induced by investment from higher fuel prices, make alternative energy production less expensive:

“The mass production of Honda’s next-generation solar cell became possible with a new mass production process for thin film solar cells developed independently by Honda Engineering,” the company stated.

Oh, and there's this added bonus:

Honda said its solar cells would be composed of non-silicon compound materials, consuming half as much energy and generating 50 percent less carbon dioxide during production when compared with conventional solar cells made from silicon.

Comments

[joshua corning]

"a) Increasing prices for fossil fuels increases the demand for substitutes--because they become relatively cheap:"

you know i am starting to question this premise again...not that this wouldn't happen if oil prices increase..but this time i question the premise that oil prices have increased beyond inflation....are not gas prices cheaper then they were in the early 80's?

and can't it reasonably be shown that prices have been flat for some time?