TY  - GEN
TI  - Stranded Assets in the Transition to a Carbon-Free Economy
AU  - van der Ploeg, Rick
AU  - Rezai, Armon
PY  - 2019
PB  - Munich: Center for Economic Studies and ifo Institute (CESifo)
LA  - eng
KW  - ddc:330
KW  - E62
KW  - F41
KW  - G11
KW  - O33
KW  - Q33
KW  - Q34
KW  - Q35
KW  - Q40
KW  - Q54
KW  - de-carbonisation
KW  - policy tipping
KW  - technology
KW  - stranded assets
AB  - Assets in the fossil fuel industries are at risk of losing market value due to anticipated breakthroughs in renewable technology and governments stepping up climate policies in the light of the Paris commitments to limit global warming to 1.5 or 2 degrees Celsius. Stranded assets arise due to uncertainty about the future timing of these two types of events and substantial intertemporal and intersectoral investment adjustment costs. Stranding of assets mostly affects the 20 biggest oil, gas and coal companies who have been responsible for at least a third of global warming since 1965, but also carbon-intensive industries such as steel, aluminium, cement, plastics and greenhouse horticulture. A disorderly transition to the carbon-free economy will lead to stranded assets and legal claims. Institutional investors should be aware of these financial risks. A broader definition of stranded assets also includes countries reliant on fossil fuel exports and workers with technology-specific skills.
UR  - http://hdl.handle.net/10419/215027
UR  - https://www.pollux-fid.de/r/base-ftzbwkiel:oai:econstor.eu:10419/215027
H1  - Pollux (Fachinformationsdienst Politikwissenschaft)
ER  -