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Incentives, Risk and Climate Change Policy Evolution: Modelling its impact on Electricity Investment - EP0204

The project is concerned with how society’s concerns about climate change are transmitted into investment commitments by private energy companies in liberalised markets. This presents a delicate problem of incentive setting and risk allocation, through several layers of institutional policy setting and corporate decision-making. The overall benefit of this project is that it will lead to a better understanding of how risks can be allocated between policy-makers and company decision-makers, which could help to guide policy design towards creating a more consistent set of objectives for all market participants in the electricity system.
Time-Scale and Cost
From: 2007

To: 2009

Cost: £10,000
Contractor / Funded Organisations
London Business School
Climate Change              
Economic Research