The type of thinking needed in exponential times

Busy road with fumes

If you could choose a house on a busy road, or a quiet road in the same suburb, and price was not an issue, the choice is simple – the quiet road wins every time. And we all know why – less pollution, less noise, less danger. Oh, and quieter streets are usually nicer to look at. The prices of real estate reflect this. A house of similar quality on a busier road can be as much as 50% cheaper.

So here’s a question worth thinking about: What happens to those property prices when all cars have electric engines, and they don’t have tail pipes? You guessed it – there is almost no noise and no localised pollution. Surely then, the prices of houses in busy streets will go up and bridge the existing pricing gap somewhat. In the next 10 years significant amounts of money will be made in property by arbitraging the positive impact of electric cars.

It’s economic plays like this that are easy to see once we start thinking about the impact of the technology, and not the technology itself.

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