Who Pays for the Energy Transition?
DOI:
https://doi.org/10.29173/alr2762Abstract
The global shift towards decarbonization-driven energy technologies is reshaping existing energy systems and driving demand for clean energy. Governments, utilities, and private capital are embracing various technologies like wind, solar, nuclear, and hydrogen. However, the challenge lies in determining who bears the costs, risks, and rewards of this transition — governments, ratepayers, or investors — with lasting consequences. Taxpayers, utility ratepayers, and private investors each have unique interests that can create tensions. Despite diverse approaches across Canada, the ultimate aim is reducing emissions to net zero. This article explores the multifaceted funding scenarios and offers insights into efficient and equitable decision-making for a successful energy transition. It examines the roles of stakeholders, analyzes approaches, and recommends ways to navigate trade-offs.
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