Final answer:
Power companies face difficulties extracting value from alternative energy technologies due to economies of scale, shorter patent protection, and competition from cheaper alternatives.
Step-by-step explanation:
Power companies are finding it difficult to extract value from these technologies for three reasons:
- Economies of scale: Each power company would have to produce at a higher average cost because they would need to build their own power lines, resulting in higher prices for consumers.
- Shorter patent protection: If innovation becomes less lucrative due to shorter patent protection, research and development in the field of alternative energy would likely decline.
- Competition from cheaper alternative energy sources and environmental regulations: The availability of cheaper alternative energy sources like natural gas, solar, and wind, combined with environmental regulations discouraging the use of high-sulfur coal, has impacted the coal economy and hindered the adoption of alternative energy technologies.