Why Tech Prices Plummet Faster Than We Think

Have you ever wondered why the costs of clean technology seem to drop like a rock? It's not just because we get better at using them over time. There's also something called economies of scale. This means that when projects get big, they can benefit from lower costs as they produce more. A recent study found that, in many cases, a big chunk of the cost drop is due to these economies of scale, not just our learning curve.If we only consider learning, we might think that costs will drop less for big technologies and more for smaller ones. But that's not always how it works. Technology can also advance at lightning speed, creating something called a 'knowledge gap'. This explains why the size of technology can change so fast. Understanding both learning and economies of scale can help us make smarter choices.