Prices do not adjust immediately, so bringing down inflation will cost output and jobs.
By the same token, renewable technologies are following similar output efficiency and cost reduction curves, while growing more quickly than most optimistic projections of just a few years ago.
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Higgins intends to attach to the line 200 megawatts (peak output) of windmills, ostensibly generating electricity at a cost of 7 cents a kilowatt-hour, and has contracted to buy all the output of a 65-megawatt solar plant that would be an eco-loss-leader costing 25 cents per kwh.
Information in the form includes the expected power output, cost, terms of a power sales agreement, and a projected return on the investment.
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His book addresses the argument in cost-benefit terms, and concludes that spending 1-2% of global output to avoid a significant temperature rise is a bargain worth taking a similar conclusion to that in his original 2006 study.
We know that factors that raise the cost of doing business, like higher energy prices or costly regulations, reduce output and employment.
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Sales and output will rise as consumers scramble to buy today what they know will cost more tomorrow.
But the output of goods less exposed to low-cost competition, such as cars and chemicals, has grown (see chart).
If that capital cost has fallen for the same energy output then obviously the return is far higher now and should be revised.
Input cost inflation fell to its lowest level in two-and-a-half years, while output price increases moderated to their slowest pace since Q3 2010, bringing a much needed break from relentless inflation. (Read Mantega: Inflation Under Control In Brazil).
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With the cost of the last worker hired now greater than his productivity, a profit-maximising firm will reduce employment and output.
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