ABSTRACT
Economic, social, political, and environmental factors can vary enormously between different areas of a country, presenting a varied pattern of risks, opportunities, and challenges to the roll out of a low-carbon technology, associated policies, and behavioural changes. Investments in low-carbon technological innovations are often viewed as a high risk, which increases the cost of borrowing capital. Government support to minimise financial risk through policy incentives to investors and households can in itself expose both governments and energy consumers to significant financial risks if the cost of the policy escalates. Politicians are often hesitant to support low-carbon pathways if there are risks of disrupting the status quo, particularly if they think this will result in public backlash. If public resistance is anticipated, early stakeholder involvement can reduce risks by allowing stakeholders to modify the scheme and achieve ‘buy in’.
