New article on the impact of cost of capital for the European Energy Transition
A new study from our research group, in collaboration with ETH's Energy and Technology Policy Group, the University of Utrecht School of Economics, and E3M, was published in Climatic Change.
Based on a novel method to estimate cost of capital across countries and technologies, we extend an energy system model commonly used for policy advice to the EU commission, and study the effect of differentiated cost of capital. Results show that an improved representation of cost of capital can lead to a more rapid renewable energy deployment and lower system costs, as compared to the standard modelling assumptions.
Please find the article external page here and our accompanying policy brief here