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About: Backstop resources     Goto   Sponge   NotDistinct   Permalink

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Backstop resources theory states that as a heavily used limited resource becomes expensive, alternative resources will become cheap by comparison, therefore making the alternatives economically viable options. In the long term, the theory implies faith that technological progress will allow backstop resources to be essentially unlimited (see also Cornucopian), and that need will cause the development of new technologies to become cost effective. This idea is supported by economist Robert Solow who claimed that four-fifths of US economic growth could be attributed to technological development (the other fifth being accounted for by expansion of labor and capital).