IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2503.16009.html
   My bibliography  Save this paper

The Striking Impact of Natural Hazard Risk on Global Green Hydrogen Cost

Author

Listed:
  • Maximilian Stargardt
  • Justus Hugenberg
  • Christoph Winkler
  • Heidi Heinrichs
  • Jochen Lin{ss}en
  • Detlef Stolten

Abstract

Due to climate change, natural hazards that affect energy infrastructure will become more frequent in the future. However, to incorporate natural hazard risk into infrastructure investment decisions, we develop an approach to translate this risk into discount rates. Thus, our newly developed discount rate approach incorporates both economic risk and natural hazard risk. To illustrate the impact of including the risk of natural hazards, we apply country-specific discount rates for hydrogen production costs. The country-specific relative difference in hydrogen generation cost ranges from a 96% surplus in the Philippines to a -63% cost reduction in Kyrgyzstan compared to a discount rate that only consists of economic risks. The inclusion of natural hazard risk changes the cost ranking of technologies as outcome of energy system models and thus policy recommendations. The derived discount rates for 254 countries worldwide are published in this publication for further use.

Suggested Citation

  • Maximilian Stargardt & Justus Hugenberg & Christoph Winkler & Heidi Heinrichs & Jochen Lin{ss}en & Detlef Stolten, 2025. "The Striking Impact of Natural Hazard Risk on Global Green Hydrogen Cost," Papers 2503.16009, arXiv.org.
    • Handle: RePEc:arx:papers:2503.16009
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2503.16009
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2503.16009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.