This paper uses survey data to create a model of carbon risk (the financial risk associated with CO2 emissions under uncertain climate change policy). The usual way to incorporate the notion of carbon risk into investment decision making is to include a cost of carbon in the budget analysis....

The energy industry has been slow to move away from fossil fuels and towards renewable resources. In this paper I find evidence for a cognitive bias that plays a role in this momentum. Energy executives’ expectations of future energy prices are strongly correlated with their own preferences,...

In order to give future generations a voice in decisions that will impact them, this paper proposes a dual-approach method for constructing a “sustainability viewpoint” in transport appraisal. Our method juxtaposes an expert-based SV with a principle-based SV. In the former, sustainability...

It is generally understood that the pattern of repeated expiration and short-term renewal of the federal production tax credit (PTC) causes a boom-bust cycle in wind power plant investment in the US. This on-off pattern is detrimental to the wind industry, since ramp-up and ramp-down costs are...

This paper introduces the concept of payment probability as an important component of carbon risk (the financial risk associated with CO2 emissions under uncertain climate policy). In modeling power plant investment decisions, most existing literature uses the expected carbon price (e.g., the...