Why Is There Such a Low Incentive To Innovate in the CleanTech Space?
My dear friend, perennial client, and 2GreenEnergy Assoociate Terry Ribb is an avid futurist, and thus a huge fan of innovation. The videos linked below deal with “cashier-free smart grocery stores,” and are very typical of the cool things she sends me, and I’m very grateful to be kept in the loop–an arena that would otherwise go right over my head.
She writes: Innovation Friends, The new digital store! Somehow I missed this when it came out last December. But it’s worth watching now; it gives us a glimpse of the future of Whole Foods. Here is a video showing Amazon’s beta store. You simply walk in, pick up groceries, and walk out. It charges your amazon account. They call it “just walk out” technology. And here is a CBS in-depth review of Amazon’s strategy and how other grocers (Walmart, Target) are evolving their digital formats, all to eliminate check out.
I like it!
There is an enormous motivation on the part of companies like these to innovate in the direction of customer convenience, since it’s a huge differentiator. Early entrants have an advantage, and those who would otherwise be laggards are forced to adopt this technology almost immediately, or they fall behind and lose customers. (Btw, with no muss or fuss, this handles the extremely expensive problem of shoplifting at the same time; items that leave the store without a valid account to pay for them sound an alarm.) Of course, it gives rise to the question: Why is there so much incentive in places like this and so much less in cleantech? Here we’re talking about shaving a few minutes of tedium off the shopping experience; in cleantech we’re saving humankind from imminent catastrophe.
The answer is the age-old problem of our failing to internalize the externalities. There is very little financial penalty to be paid by companies that dump their waste products into our skies and waterways—and even less as our environmental regulations here in the U.S. are being eviscerated.
Take the case of greenhouse gas emissions, the resultant global warming, and the consequence of increasing storm damage. Are Chevron, ExxonMobil, Shell, BP, et al., paying for that? Hell no. And until there is proper accounting for the transactions that occur with dirty products, there will remain almost zero incentive to correct the problem.
Needless to say, in the U.S. at least, we’re a million miles away from making such a sweeping change, but it’s not out of the question for the future, as the environmental situation gets more and more out of hand.
Craig,
What an odd combination of simplistic assertions !
Why would you automatically assume that a sort of Orwellian shopping experience is beneficial and orchestrated for the benefit of the consumer, while condemning organizations that provide the means to operate lifesaving emergency services and almost all modern technology ?
I guess old socialist/fascists never really change their spots. There will always be those for whom choice is frightening and even immoral. These folks hanker for choice to be made for them by faceless bureaucrats.
Already corporations have reported a significant amount of consumer dissatisfaction and inconvenience with the abolition of checkouts.
In addition, these major chains have been selectively reducing suppliers, especially local independent suppliers, replacing variety with multi-branding.
The consumer is rapidly left with very little choice as more independent manufacturers merge or fail to compete with giant globalized supply chains.
As local employment disappears, so does community awareness and democracy. Local community loyalties are basis of democracy.
You might look down on the value of the check out operators employment, or the role of the sales clerk and other personalized employment and in many instances technology will indeed make these jobs obsolete.
However, do you really want a world controlled by a handful of giant international corporations ? Corporations who impose rules and restrictions that often have much grater effect in the daily lives of citizens than elected governments ?
” internalize the externalities” is a meaningless phrase if used applied selectively, and it’s impossible to impose any other way.
Should we factor in the shocking environmental damage and horrendous human cost in mining Cobalt which is the main component in all lithium-ion batteries ? Will you pay more for the batteries in your lap top, hybrid (I’ll bet you answer Hell No !).
On the other hand, should we thank Exxon, Chevron etc for all the lives saved and saving to the environments by most of the 350,000 products made from oil ? (Including the 211 products enabling the production, erection and distribution of Wind turbine generation) shouldn’t we factor in the “externalities” of wind turbines ?.
Will you pay for times as much for power from Turbines? (what’s that I hear, Hell No ?)
Craig, we live in a very complex and world, where interdependent infrastructure becomes more and more complex and impossible to separate.
Quixotic simplistic ranting and moralizing, is neither helpful nor productive.
Not all technology is beneficial. All technology needs careful examination and thought as to the often concealed, downsides.
Every day, more and more new technology arrives, some are genuine boons, some are inevitable but have undesirable aspects, others are very undesirable.
Each technology will have sponsors and supporters, we must be vigilant as to how these technologies benefit, not just the environment, but humanity. That means all humans, not just a selected few imposing their ideas on the rest.
It’s a little like trying to ascribe different virtues to the tentacles of a hydra !:)
An example of the benefits of new technology is the way in which my new American student friend, has been able to converse via Skype with my daughter who is now back at University in Melbourne Australia.
Fascinating to watch my daughter, my son, our new American friend all talking together although in different locations, thousands of miles apart.
Tomorrow, my new guide informs me, I should exchange my current rental transport for more a appropriate vehicle to tour the coal fields of Eastern Kentucky.
I’m looking forward to visiting and learning about one of the poorest and most neglected parts of the US. I’m particularly interested in the cultural changes of recent years.
I’m grateful for the many invitations of hospitality I’ve received, and the kindness of my young guide whose local knowledge will prove very useful in getting more than just a superficial insight.
(I’m looking forward to visiting Van Lear and where all those great country singers originated).
I’ve also been invited to attend another scientific engineering conference regarding clean coal technology, this time including some speakers from Europe and Asia. Hopefully, the technologies discussed will be more promising. ( If not, well there’s always the joy of sampling the local ‘white lightning’ :).