Climate policy uncertainty and investment risk
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. The 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. This book also tells what can be done in policy design to reduce these costs.
Related Content
- Landscape of guarantees for climate finance in EMDEs
- How can investors move from greenwashing to SDG-enabling?
- Economic and Social Survey of Asia and the Pacific 2019: ambitions beyond growth
- Critical success factors for resilient water infrastructure
- Adaptation to climate change in the hydro-electricity sector in Nepal
- Investing in disaster risk management in an uncertain climate