The theory of "backstop resources" is used by economic optimists to downplay fears about resource shortages, especially energy resources (see Peak oil). The essential argument is that as a limited resources become expensive, others will become cheap by comparison and therefore economically viable. Those with extreme faith in technological progress claim that backstop resources are essentially unlimited, and only need to be developed 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). The Hubbert peak theory, also known as peak oil, is an influential theory concerning the long-term rate of conventional oil production and depletion. ... Robert Merton Solow (born August 23, 1924) is an American economist particularly known for his work on the theory of economic growth. ...

Criticism

Environmental economists and critics of globalized capitalism take issue with this theory for a number of reasons. Environmentalists disagree with Solow's conclusion about the role of technology because it neglects to consider the increases in exploitation of natural resources which may be responsible for much of the growth attributed to technology. Anti-globalists apply a similar argument, but tend to focus on exploitation of third world societies rather than the environment. This article or section does not cite its references or sources. ...

The theory also neglects to account for certain requisite properties of the resources in question and the development of necessary infrastructure. It may be possible to design a car to run on hydrogen, but widescale construction of a hydrogen infrastructure is a far more complex problem, especially in a scenario in which the major resource is already becoming scarce.

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