Climate Cost Uncertainty, Retrofit Cost Uncertainty, and Infrastructure Closedown : A Framework for Analysis

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Strand, Jon
dc.contributor.author
Miller, Sebastian
dc.date.accessioned
2014-09-02T18:32:12Z
dc.date.available
2014-09-02T18:32:12Z
dc.date.issued
2010-02
dc.date.lastModified
2017-12-14T09:04:43Z
dc.description.abstract
Large and energy-intensive infrastructure investments with long life times have substantial implications for climate policy. This study focuses on options to scale down energy consumption and carbon emissions now and in the future, and on the costs of doing so. Two ways carbon emissions can be reduced post-investment include retrofitting the infrastructure, or closing it down. Generally, the presence of bulky infrastructure investments makes it more costly to reduce emissions later. Moreover, when expected energy and environmental costs are continually rising, inherent biases in the selection processes for infrastructure investments lead to excessive energy intensity in such investments. Thus great care must be taken when choosing the energy intensity of the infrastructure at the time of investment. Simulations indicate that optimally exercising the retrofit option, when it is available, reduces ex ante expected energy consumption relative to the no-option case. Total energy plus retrofit costs can also be substantially reduced, the more so the larger is ex ante cost uncertainty. However, the availability of the retrofit option also leads to a more energy intensive initial infrastructure choice; this offsets some, but usually not all, of the gains from options for subsequent retrofitting.
en
dc.identifier
http://documents.worldbank.org/curated/en/2010/02/11795686/climate-cost-uncertainty-retrofit-cost-uncertainty-infrastructure-closedown-framework-analysis
dc.identifier.uri
http://hdl.handle.net/10986/19921
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 5208
dc.rights
CC BY 3.0 IGO
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ABATEMENT POLICIES
dc.subject
ALTERNATIVE ENERGY
dc.subject
ALTERNATIVE ENERGY TECHNOLOGIES
dc.subject
APPROACH
dc.subject
ATMOSPHERE
dc.subject
AVAILABILITY
dc.subject
BALANCE
dc.subject
CALCULATION
dc.subject
CAPITAL COST
dc.subject
CAPS
dc.subject
CARBON
dc.subject
CARBON CAPTURE
dc.subject
CARBON DIOXIDE
dc.subject
CARBON DIOXIDE EMISSIONS
dc.subject
CARBON EMISSIONS
dc.subject
CENTRAL CITIES
dc.subject
CLIMATE
dc.subject
CLIMATE CHANGE
dc.subject
CLIMATE POLICY
dc.subject
CO
dc.subject
CO2
dc.subject
CONSUMPTION OF FOSSIL
dc.subject
COST-BENEFIT
dc.subject
COSTS OF EMISSIONS
dc.subject
DEW
dc.subject
DISCOUNT RATE
dc.subject
DISCOUNT RATES
dc.subject
DISTRIBUTION OF ENERGY
dc.subject
DRIVERS
dc.subject
ECONOMIC ANALYSIS
dc.subject
EMISSION
dc.subject
EMISSION ABATEMENT
dc.subject
EMISSIONS CONTROL
dc.subject
EMISSIONS INTENSITY
dc.subject
EMISSIONS PRICES
dc.subject
EMISSIONS TAXES
dc.subject
ENERGY CONSUMPTION
dc.subject
ENERGY COSTS
dc.subject
ENERGY DEMAND
dc.subject
ENERGY ECONOMICS
dc.subject
ENERGY EFFICIENCY
dc.subject
ENERGY EXPENDITURE
dc.subject
ENERGY EXPENDITURES
dc.subject
ENERGY INTENSIVE
dc.subject
ENERGY POLICIES
dc.subject
ENERGY POLICY
dc.subject
ENERGY PRICE
dc.subject
ENERGY PRICES
dc.subject
ENERGY PRODUCTION COSTS
dc.subject
ENERGY REQUIREMENT
dc.subject
ENERGY SOURCES
dc.subject
ENERGY SUPPLY
dc.subject
ENERGY TAXES
dc.subject
ENERGY TECHNOLOGY
dc.subject
ENERGY USE
dc.subject
ENVIRONMENTAL COSTS
dc.subject
ENVIRONMENTAL ECONOMICS
dc.subject
EXTERNALITIES
dc.subject
FOSSIL
dc.subject
FOSSIL ENERGY
dc.subject
FOSSIL ENERGY USE
dc.subject
FOSSIL FUEL
dc.subject
FOSSIL FUELS
dc.subject
FUEL
dc.subject
FUEL CONSUMPTION
dc.subject
FUEL COSTS
dc.subject
FUEL EXTRACTION
dc.subject
FUEL MARKET
dc.subject
FUTURE PRICES
dc.subject
GHG
dc.subject
GHGS
dc.subject
GREENHOUSE
dc.subject
GREENHOUSE GASES
dc.subject
HIGH ENERGY
dc.subject
HIGH ENERGY INTENSITY
dc.subject
INCOME
dc.subject
INFRASTRUCTURE COST
dc.subject
INFRASTRUCTURE COSTS
dc.subject
INFRASTRUCTURE DEVELOPMENT
dc.subject
INFRASTRUCTURE INVESTMENT
dc.subject
INFRASTRUCTURE PROJECTS
dc.subject
INFRASTRUCTURES
dc.subject
LOW-CARBON
dc.subject
MARGINAL UTILITY
dc.subject
MARKET FAILURE
dc.subject
POPULATION DENSITY
dc.subject
PP
dc.subject
PUBLIC TRANSPORT
dc.subject
RENEWABLE ENERGIES
dc.subject
RENEWABLE ENERGY
dc.subject
RENEWABLE ENERGY PRODUCTION
dc.subject
RESOURCE ECONOMICS
dc.subject
RETROFIT OPTION
dc.subject
RETROFITTING
dc.subject
RISK AVERSION
dc.subject
SCENARIOS
dc.subject
STOCHASTIC PROCESS
dc.subject
SUBSTITUTION
dc.subject
SUBURBS
dc.subject
SUPPLY COSTS
dc.subject
TOTAL COST
dc.subject
TOTAL COSTS
dc.subject
TRANSPORT
dc.subject
TRANSPORT SYSTEM
dc.subject
TRANSPORT SYSTEMS
dc.subject
TRANSPORTATION
dc.subject
TRANSPORTATION COSTS
dc.subject
TRUE
dc.subject
UTILITY FUNCTION
dc.subject
WEALTH
dc.subject
ZERO EMISSIONS
dc.title
Climate Cost Uncertainty, Retrofit Cost Uncertainty, and Infrastructure Closedown : A Framework for Analysis
en
okr.crosscuttingsolutionarea
Climate Change
okr.date.disclosure
2010-02-28
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2010/02/11795686/climate-cost-uncertainty-retrofit-cost-uncertainty-infrastructure-closedown-framework-analysis
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Transport and ICT
okr.globalpractice
Environment and Natural Resources
okr.globalpractice
Energy and Extractives
okr.globalpractice
Energy and Extractives
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-5208
okr.identifier.externaldocumentum
000158349_20100216102532
okr.identifier.internaldocumentum
11795686
okr.identifier.report
WPS5208
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/02/16/000158349_20100216102532/Rendered/PDF/WPS5208.pdf
en
okr.sector
Energy and mining :: General energy sector
okr.theme
Environment and natural resources management :: Climate change
okr.theme
Environment and natural resource management
okr.topic
Environment :: Climate Change Mitigation and Green House Gases
okr.topic
Macroeconomics and Economic Growth :: Climate Change Economics
okr.topic
Transport Economics Policy and Planning
okr.topic
Energy :: Energy Production and Transportation
okr.topic
Environment :: Environment and Energy Efficiency
okr.topic
Transport
okr.unit
Environment and Energy Team, Development Research Group
okr.volume
1 of 1

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