Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research

This paper introduces the special issue on Strategic Choices for Renewable Energy Investment, which is a collection of best papers presented at an international research conference held in St. Gallen (Switzerland) in February 2010. Substantial private investment is needed if public policy objectives to increase the share of renewable energy and prevent dangerous anthropogenic climate change are to be achieved. The aim of this paper, and the entire special issue, is to draw scholarly attention to the processes underlying strategic choices for renewable energy investment, and how they are influenced by energy policy. We disentangle the role of risk-return perceptions, portfolio effects and path dependence in explaining energy investment decisions, and suggest that the heterogeneous universe of investors requires a segmentation of policies. The paper outlines some of the rich opportunities for further research in this emerging area. (C) 2011 Elsevier Ltd. All rights reserved.