UPSC Prelims 2025 CSAT Paper II · Q34 of 78 Comprehension medium

Passage

Passage – 2 The history of renewable energy suggests there is a steep learning curve, meaning that, as more is produced, costs fall rapidly because of economies of scale and learning by doing. The firms' green innovation is path-dependent : the more a firm does, the more it is likely to do in the future. The strongest evidence for this is the collapse in the price of solar energy, which became about 90% cheaper during the 2010s, repeatedly beating forecasts. Moving early and gradually gives economies more time to adjust, allowing them to reap the benefits of path-dependent green investment without much disruption. A late, more chaotic transition is costlier.

With reference to the above passage, the following assumptions have been made : I. Path-dependent green investments will eventually most likely benefit growth as well as public finances in a country like India. II. If other green technologies follow the same pattern as that of solar energy, there will most likely be an easy green transition. Which of the above assumptions is/are valid ?

  1. (a) I only
  2. (b) II only
  3. (c) Both I and II ✓ UPSC's answer
  4. (d) Neither I nor II

Why the answer is (c)

• The passage states that green innovation is path-dependent, meaning firms that invest early are more likely to continue investing, creating a cumulative advantage.

• It highlights that moving early and gradually allows economies to adjust, reaping benefits from path-dependent investment without significant disruption.

• Assumption I is valid because the passage links early, gradual transition to economic benefits and lower costs, implying positive outcomes for growth and public finances.

• Assumption II is valid because the passage uses the solar energy price collapse (90% cheaper) as the strongest evidence for the learning curve, suggesting other technologies following this pattern would also see rapid cost reductions.

• The text explicitly contrasts a 'late, more chaotic transition' as costlier with an early one, supporting the idea that following the solar pattern leads to a smoother, easier transition.

• Therefore, both assumptions logically follow from the passage's arguments on learning curves, path-dependence, and the benefits of early adoption.

Why the other options are wrong

(a) I only
This option is incorrect because Assumption II is also valid, as the passage supports the idea that other technologies following the solar pattern would experience similar cost reductions and smoother transitions.
(b) II only
This option is incorrect because Assumption I is also valid, as the passage argues that early, gradual transition allows economies to adjust and reap benefits, positively impacting growth and finances.
(d) Neither I nor II
This option is incorrect because both Assumptions I and II are valid inferences supported by the passage's discussion on learning curves, path-dependence, and the benefits of early adoption.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2025, held on 25 May 2025. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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