ISBN:
9789264030152
Language:
English
Pages:
Online-Ressource (130 p.)
Parallel Title:
Druckausg.
Parallel Title:
Erscheint auch als Blyth, William Climate policy uncertainty and investment risk
Keywords:
Klimaschutz
;
Energiewirtschaft
;
Investition
;
Climatic changes Economic aspects
;
Climatic changes Government policy
;
Energy industries Environmental aspects
;
Energy policy
;
Investments Environmental aspects
;
Power resources Government policy
;
Energy
;
Klimaschutz
;
Energiewirtschaft
;
Investitionsverhalten
;
Risikokosten
Abstract:
Our climate is changing. Less certain, however, is the timing and magnitude of climate change, and the cost of transition to a low-carbon world. This book identifies how climate change policy uncertainty may affect investment behaviour in the power sector. For power companies, where capital stock is intensive and long-lived, those risks rank among the biggest and can create an incentive to delay investment. Our analysis results show that the risk premiums of climate change uncertainty can add 40% of construction costs of the plant for power investors, and 10% of price surcharges for the electricity end-users. Climate Policy Uncertainty and Investment Risk tells what can be done in policy design to reduce these costs.
DOI:
10.1787/9789264030152-en
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