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Monday, January 16, 2023

Technological Disruption and Innovation

 

     This is an excerpt from my 2021 book, Sensible Decarbonization: Regulation, Risk, and Relative Benefits in Different Approaches to Energy Use, Climate Policy, and Environmental Impact

     No technologies are immune to disruption. They are disrupted mainly by competing technologies that are deemed better by consumers of the technologies. Innovation, doing things better, is the driver of technology change. Unfortunately, innovation often creates winners and losers, but that is the nature of competition in business and capitalism. However, it is not just the profit motive but also the desire to create public good, usefulness, utility. One might call that the usefulness motive or the utilitarian motive. The desire for excellence in one’s endeavors is another motivation. The desire to improve human well-being is another or perhaps it is roughly synonymous with the utilitarian motive. In terms of green technologies, one might add a waste reduction motive: the desire to achieve reductions in energy use, reductions in energy waste, reductions in pollution, solid, liquid, and gaseous wastes, or reductions in greenhouse gas emissions. Reduce, reuse, and recycle became goals to prevent a fraction of waste. More recent goals are in making integrated circular economies that optimize utility and reduce waste of resources.

     From disruption often comes dispute. Those about to get disrupted want protection from the disruptors and sometimes they seek the help of regulators. I will mention two examples: A company attempting to build a natural gas power plant in West Virginia, a state with very abundant and cheap natural gas, was sued by a local jobs group funded by the coal industry, a delay tactic more common among environmentalists.[1] Another example also partially involves the economic feasibility of natural gas power doing the disrupting. State bailouts of nuclear and coal plants with taxpayers footing much of the bill have happened in a few states. This includes charging the public to make them profitable compared to the disrupter. This is direct subsidization. In terms of clean energy and decarbonization, one might agree with subsidization of nuclear but not subsidization of coal. In the US bailouts were attempted, or at least studied at the federal level but were not enacted. The rationale given for potential coal subsidization was reliability of baseload power and fuel-on-site needs for power plants during high-demand times such as cold snaps. Analysis by system operators showed that this was not a relevant issue in most parts of the country. In these cases, affordable natural gas was the disruptor, and less economic (nuclear) and higher emissions (coal) power generation were the disrupted. The bailouts simply stop the disruption.  

     We also adapt to disruption. We become resilient and flexible enough to assimilate new technologies and other changes. We preserve our adaptive capacity. We cope. Many of our modern technologies have annoying aspects in addition to their great utility. We adjust. New technologies are often resisted but gradually take hold as the benefits or upsides come to be seen as justifying the downsides. This is perhaps not too unlike Thomas Kuhn’s “paradigm shifts” in which new data and new scientific consensus, often gradual and with resistance, leads to new scientific understanding. Kuhn noted in his book The Structure of Scientific Revolutions that scientific understanding involves some subjective inputs as well as objective ones. Consensus can be seen as a subjective steering of interpretation of the objective. Once more and more scientists accept a paradigm it is adopted. He also suggested that competing paradigms are often irreconcilable.[2] Is there an irreconcilability between those who want very accelerated decarbonization and those who want more gradual or even no decarbonization? The COP 21 Paris agreement shows that very few countries are calling for zero decarbonization, so the argument is really between accelerated and measured decarbonization. To clarify, what I mean by measured decarbonization means accelerated from what it is now but in a measured and gradual way. Practicable technological relativism seems preferable to some less practicable technological idealism. We celebrate and seek to optimize the upsides and deal with the downsides as best we can. Often that is the most expedient means to an end. Replacing coal plants with natural gas plants is less ideal in terms of decarbonizing than replacing them with wind and solar, along with required peaker or storage, but much more expedient and practical in terms of cost and functionality so the relative benefits are significant and immediate.

     John Entine, founder of the Genetic Literacy Project wrote an excellent article explaining how precautionary-based anti-technology activists are resisting biotech technology innovations that are sure to have hugely positive benefits to society including increasing crop yields and reducing land use for agriculture, helping to mitigate climate change, feeding more people with better nutrition, making farming more efficient and inexpensive, and treating diseases. He notes that “History abounds with examples of epic misjudgments rooted in pessimism about the promise of emerging disruptive technologies.” He says that many scientists are simply bewildered at this resistance and unwillingness to simply recognize, let alone embrace these new innovations where the risks are reasonable. Like past disruptions, the dangers of the current ones are being exaggerated, he says.[3]

     Innovation is how technology improves lives. It should be encouraged rather than suppressed by the mere possibility of downsides. Well-placed research and development dollars have yielded great dividends. R&D investment must consider relative utility vs. potential harm. Harm mitigation is always ongoing. Matt Ridley writes in his 2020 book How Innovation Works: And Why it Flourishes in Freedom that a great truth about innovation is that people often underestimate its long-term impact.[4]      

 



[1] Conklin, Jamison, Sept.13, 2019. Another Gas-Fired Power Plant Moving Ahead in West Virginia. Natural Gas Intelligence (NGI).

 

[2] Kuhn, Thomas, 1970. The Structure of Scientific Revolutions. University of Chicago Press.

 

[3] Entine, John, Sept. 22, 2020. Viewpoint: Modern-day Luddites: How precautionary activism and reporting paint a misleading picture of biotechnology. Genetic Literacy Project. https://geneticliteracyproject.org/2020/09/22/viewpoint-modern-day-luddites-how-precautionary-activism-and-reporting-paint-a-misleading-picture-of-biotechnology/

 

[4] Ridley, Matt, 2020. How Innovation Works: And Why It Flourishes in Freedom. Harper Collins.

 

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