The low‐carbon risk society: Dilemmas of risk–risk tradeoffs in energy innovations, transitions, and climate policy

Abstract

AbstractAs countries and communities grapple with climate change, they seek to rapidly decarbonize their economies and cultures. A low‐carbon future will likely depend on more distributed solar energy, the electrification of mobility, and more efficient homes and buildings. But what emergent risks are evident within this low‐carbon society? This exploratory study first reviews the existing literature to identify 75 risk–risk tradeoffs by their category, medium of distribution, and type. It builds on these 75 examples to apply a typology of Risk Offsets, Risk Substitution, Risk Transfer, and Risk Transformation. Based on extensive document analysis, it applies that typology to three low‐carbon innovations: solar energy, battery electric vehicles, and building energy efficiency retrofits, identifying 36 distinct risk–risk tradeoffs in total. As such, the paper moves to discuss complexities and challenges in risk management. In doing so, it calls for a more refined risk assessment that better accounts for decision‐making considerations such as the magnitude or probability of risk, size of population exposed, certainty in risk estimation, severity of adverse outcome, distributional considerations, and the timing of risk impacts. It also summarizes emergent research gaps. Risk management in the context of climate action becomes a three‐dimensional chess game of weighing risk transmission, risk mediums, and risk categories.