Paragraph: 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 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.
Q1. Which one of the following statements best reflects the central idea of the passage?
(a) Economies of scale is essential for transition to green growth.
(b) Modern technological progress is intensely linked to path-dependent innovations.
(c) Countries with large economies are in a better position to adopt green technologies.
(d) Timing plays a crucial role in the case of green technology development.
Q2. With reference to the above passage, the following assumptions have been made:
I. Path-dependent green investments will eventually most likely benefit growth as well as public finances in a country like India.
II. If other green technologies follow the same pattern as that of solar energy, there will most likely be an easy green transition.
Which of the above assumptions is/are valid?
(a) I only
(b) II only
(c) Both I and II
(d) Neither I nor II
UPSC Prelims 2025 CSAT
Q1. Correct Option: (d) Timing plays a crucial role in the case of green technology development.
Explanation: The passage emphasizes the importance of timing in adopting green technologies. It clearly states that moving early and gradually allows economies to adjust smoothly, reaping benefits from path-dependent green investments. Conversely, a late and chaotic transition is described as costlier. Thus, the central idea revolves around the significance of timing in green technology development.
Option (a) is incorrect because, although economies of scale are mentioned, they are not presented as the central idea. Option (b) is incorrect because the passage specifically discusses green technology rather than modern technological progress in general. Option (c) is incorrect because the passage does not discuss the size of economies as a factor in adopting green technologies.
Hence, option (d) is correct.
Q2. Correct Option: (c) Both I and II
Explanation: Assumption I: “Path-dependent green investments will eventually most likely benefit growth as well as public finances in a country like India.” This assumption is valid because the passage clearly suggests that path-dependent green investments lead to falling costs and economic benefits. Although India is not explicitly mentioned, the logic presented in the passage about economies of scale, learning by doing, and falling costs strongly implies that countries like India would benefit economically and financially from such investments.
Assumption II: “If other green technologies follow the same pattern as that of solar energy, there will most likely be an easy green transition.” This assumption is also valid. The passage explicitly mentions solar energy as an example of a successful green technology whose costs fell dramatically due to economies of scale and learning by doing. It implies that if other green technologies follow a similar trajectory, the transition to green energy would be smoother and easier.
Thus, both assumptions I and II are valid.
Hence, option (c) is correct.
