The DOI matches its Crossref record; 9 of the 9 references it cites were found in a registry or an index.
Estimating the cost of capital for renewable energy projects
Open accessAbstract
Many models in energy economics assess the cost of alternative power generation technologies. As an input, the models require well-calibrated assumptions for the cost of capital or discount rates to be used, especially for renewable energy for which the cost of capital differs widely across countries and technologies. In this article, we review the spectrum of estimation methods for the private cost of capital for renewable energy projects and discuss appropriate use of the methods to yield unbiased results. We then evaluate the empirical evidence from 46 countries for the period 2009–2017. We find a globally consistent rank order among technologies, with the cost of capital increasing from solar PV to onshore wind to offshore wind power. On average, the cost of capital in developing countries is significantly higher than in industrialized countries, with large heterogeneity also within the groups of industrialized or developing countries.
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Cites
Common risk factors in the returns on stocks and bonds
Fama, E. F., & French, K. R. (1993) · Journal of Financial Economics · doi:10.1016/0304-405x(93)90023-5 · Cited by 25,754
CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*
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Methods of Meta-Analysis: Correcting Error and Bias in Research Findings
Schmidt, F. L., & Hunter, J. E. (2015) · doi:10.4135/9781483398105 · Cited by 5,542
Systematic Reviews in the Social Sciences: A Practical Guide
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Lintner, J. (1965) · The Journal of Finance · doi:10.1111/j.1540-6261.1965.tb02930.x · Cited by 2,452 · cited 1×
“For estimating the cost of equity, the capital asset pricing model (CAPM), originally presented by Sharpe (1964) and Lintner (1965), is the dominant framework.”
A Review of the Stern Review on the Economics of Climate Change
Weitzman, M. L. (2007) · Journal of Economic Literature · doi:10.1257/jel.45.3.703 · Cited by 1,024 · cited 1×
“Theoretical and empirical work over the last decades made progress in quantifying the social cost of capital, though substantial disagreement on the appropriate choice of parameters remains (cf. e.g. Arrow et al., 2014; Dietz et al., 2018; Weitzman, 2007).”
The underestimated potential of solar energy to mitigate climate change
Creutzig, F., Agoston, P., Goldschmidt, J. C., Luderer, G., Nemet, G., & Pietzcker, R. C. (2017) · Nature Energy · doi:10.1038/nenergy.2017.140 · Cited by 920
Improved representation of investment decisions in assessments of CO2 mitigation
Iyer, G. C., Clarke, L. E., Edmonds, J. A., Flannery, B. P., Hultman, N. E., McJeon, H. C., & Victor, D. G. (2015) · Nature Climate Change · doi:10.1038/nclimate2553 · Cited by 92
Cited by
Al-Shetwi, A. Q. (2022) · Science of The Total Environment · doi:10.1016/j.scitotenv.2022.153645 · Cited by 703
Expert elicitation survey predicts 37% to 49% declines in wind energy costs by 2050
Wiser, R., Rand, J., Seel, J., Beiter, P., Baker, E., Lantz, E., & Gilman, P. (2021) · Nature Energy · doi:10.1038/s41560-021-00810-z · Cited by 429
Metadata
- Authors
- Steffen, B.
- Venue
- Energy Economics
- Publisher
- Elsevier BV
- Published
- 2020-05
- Volume
- 88
- Pages
- 104783
- ISSN
- 0140-9883 (ISSN-L)
- OpenAlex
- W3123899250
- Cited by
- 397
- References
- 9
- FWCI
- 51.47
- Type
- journal article
- Language
- en
- Open access
- hybrid
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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