The effect of environmental policies on risk reductions in energy generation

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2021
Volume: 126
Issue: C

Authors (5)

Acevedo, Giancarlo (not in RePEc) Bernales, Alejandro (Universidad de Chile) Flores, Andrés (not in RePEc) Inzunza, Andrés (not in RePEc) Moreno, Rodrigo (not in RePEc)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We demonstrate that environmental policies can decrease the risks in energy generation for private investors when several renewable technologies are simultaneously triggered. This is because diverse renewable technologies can hedge the intermittent generation of other forms of renewable power. Our study is distinct from previous literature, which has not examined environmental policies through a risk-reduction analysis, or has only considered a few technologies—such as wind and solar—when analyzing risk-reduction benefits. This paper is important, as environmental policies can be justified not only due to environmental benefits, but also economically from a risk-reduction perspective by using basic diversification gains.

Technical Details

RePEc Handle
repec:eee:dyncon:v:126:y:2021:i:c:s0165188920301950
Journal Field
Macro
Author Count
5
Added to Database
2026-01-24