path dependencies

Question 1

path dependancy

Answer 1

once a policy or path is established, mindsets, special interests, and institutions will fight for the status quo

Question 2

path dependancies inhibit sustainability because they

Answer 2

limit emegence of a circular economy and they make it hard to decarbonize the economy

Question 3

how do path dependencies make it hard to decarbonize the economy

Answer 3

1) continued use of a product or practice based on historical preference
2) persisting use even if better methods are available
3) entrenched interest with strong existing commitments
4) change always produces winners and losers

Question 4

stranded asset

Answer 4

resource that once had value or produced income but no longer does due to external changes

Question 5

example of a stranded asset

Answer 5

moving away from fossil fuels leaves money stuck in that industry

Question 6

Joseph Schumpeter founded

Answer 6

creative destruction

Question 7

creative destruction

Answer 7

process of industrial mutation that incessantly revolutionizes economic structure from within (destroys old and creates new)

Question 8

examples of societal path dependencies

Answer 8

• urban planning for the car
• employer health insurance
• K-12 for industrial revolution
• Universities that do not prioritize R and D
• farm bills that subsdize the big 5
• nutrition food pyramid
• food culture with meat as the primary source

Question 9

examples of energy sector path dependencies

Answer 9

• AC grid, monopoly model
• auto centric landscape
• NEPA
• subsidies for fossil fuels
• 3 grids in the US rather than 1
• 1935 Fed Power Act