Moral Hazard Assessment in State-subsidized: Renewable Energy Investments

Instruments to Mitigate Financial Risk in Indian Renewable Energy Investments

Based on these targets, and assuming that these targets will be met in a linear fashion (i.e., equal capacity installation per year), using forecasted costs of renewable technologies, this would require approximately $189 billion of additional investment, including $132 billion of debt and $57 billion of equity. Among technologies, solar energy would require approximately $131 billion, wind ene...

Computing optimal subsidies for Iranian renewable energy investments using real options

For the valuation of the renewable energy investments, providing private investors with a financial incentive to accelerate their investment is a very significant issue. Financial subsidies are known by the majority of the people to be one of the most important drivers in renewable energy expansion and one of the main reasons which result in the development of any industry. In this paper, we pr...

Moral hazard in ecology

The recent global financial crisis may have lessons for ecologists. One driver of the problems many countries faced toward the end of the previous decade was risky speculation by larger banks (Okamoto, 2009). In cases where such investments succeed, the bank is the winner. When such investments fail they have the potential to ruin the bank. However, the largest banks are often deemed to be so i...

Simple Models of Operating Moral Hazard and Investing Moral Hazard

In this paper, we depict and analyze simple models of moral hazard, namely “operating moral hazard” and “investing moral hazard.” First we assume that a corporation exists primarily for the benefit of their shareholders. Then, moral hazard occurs when managers choose an option knowingly that is not optimum for shareholders. We evaluate the loss to shareholders in terms of cash flow to them in t...

How fossil energy excess - reserves in the Middle East region can trigger renewable energy investments