Implications of Potential 'Lock-In' in Markets for Renewable Energy

Nonlinear economic effects can cause unpredictable and sometimes undesirable outcomes in the marketplace. Increasing returns can lead to a self-reinforcing situation in which increasing market share leads to a more attractive product, which leads in turn to further increases in market share. This results in 'lock-in' of a technology, which cannot be overcome except by a significant shift intechnology, comsumer tastes, or other market factors.