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Energieeinsparung als Versicherung gegen Marktrisiken / Saving Energy as Insurance against Market Risk

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  • Kreuzberg Peter

    (Leiter Energie- und Umweltkonzepte / Neue Technologien, Abteilung Energiewirtschaft (XEQ), Gas-, Elektrizitäts- und Wasserwerke Köln AG, Parkgürtel 24, D-50823 Köln)

Abstract

Many investments in energy conservation are held as unprofitable, because they do not earn their cost of capital. However, using oilsaving projects as an example, one can show that the conventionally used cost of capital is probably far too high. The empirically estimated, statistically significant „BETA for Oil“ has a negative sign, thus indicating that oilsaving investments provide insurance against systematic market risk. Consequently, risk-adjusted cost of capital is below the riskfree rate.

Suggested Citation

  • Kreuzberg Peter, 1996. "Energieeinsparung als Versicherung gegen Marktrisiken / Saving Energy as Insurance against Market Risk," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 215(6), pages 675-687.
    • Handle: RePEc:jns:jbstat:v:215:y:1996:i:6:p:675-687:n:1003
    DOI: 10.1515/jbnst-1996-0603
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