Will the market alone drive renewable energy transition? New book questions assumptions

A new book, "The Price Trap" by Swedish socio-geographer Bret Christopher, argues against the prevailing notion that market forces alone will drive the transition to renewable energy as costs fall. The author contends that the belief that renewable energy will naturally replace fossil fuels simply because it becomes cheaper has not materialized in practice.

Christopher asserts that the core issues are not about price but about "profit" and "predictability." Even with significantly lower generation costs for solar and wind power, private investors may not secure stable profits. This can paradoxically lead to reduced investment in renewables due to intense competition and shrinking profit margins.

The book further emphasizes that electricity is not a typical commodity governed by supply and demand. Power requires real-time balance between supply and demand, and storage is expensive. These characteristics make electricity difficult to manage solely through market mechanisms and pose challenges for addressing the climate crisis.

As an alternative, Christopher advocates for public ownership or robust state control over renewable energy infrastructure. He argues that such measures are necessary to achieve decarbonization within the required timeframe. The book analyzes the workings of capitalism, the state, and markets beyond environmental discourse, offering significant implications for South Korea, which aims to reduce national greenhouse gas emissions by 40% from 2018 levels by 2030 and expand renewable energy.