Climate policy and stranded carbon assets: a financial perspective
"Unanticipated climate policy curbs the value of physical capital that is costly to adjust. We illustrate this by showing that climate policy to keep peak global warming below 2°C depresses the share prices of oil and gas majors and their market capitalisation, curbs exploration investment and...
| Main Authors: | , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Oxford
2018
University of Oxford |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19302044124911202269-Climate-policy-and-stranded-ca.htm |
| _version_ | 1771659899459076096 |
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| author | Van der Ploeg, Rick Rezai, Armon |
| author_facet | Van der Ploeg, Rick Rezai, Armon |
| collection | Library items |
| description | "Unanticipated climate policy curbs the value of physical capital that is costly to adjust. We illustrate this by showing that climate policy to keep peak global warming below 2°C depresses the share prices of oil and gas majors and their market capitalisation, curbs exploration investment and oil and gas discoveries, boosts proven reserves left abandoned in the crust of the earth, cuts exploitation investment, and induces an earlier onset of the carbon-free era. For a given carbon budget, an immediate carbon tax is the first-best response but delaying the carbon tax or a renewable energy subsidy to meet the same temperature target are preferred by shareholders because they introduce Green Paradox effects and protect the profitability of existing capital." |
| format | TEXT |
| geographic | international |
| id | 19302044124911202269_7d4bab2e2eb943a8b0aa3ec86cc44a9e |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19302044124911202269_7d4bab2e2eb943a8b0aa3ec86cc44a9e |
| is_hierarchy_title | Climate policy and stranded carbon assets: a financial perspective |
| language | English |
| physical | 29 p. Digital |
| publishDate | 2018 |
| publisher | Oxford University of Oxford |
| spellingShingle | Van der Ploeg, Rick Rezai, Armon climate change gas emission taxation profitability investment energy source Climate policy and stranded carbon assets: a financial perspective |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=135126895330 |
| title | Climate policy and stranded carbon assets: a financial perspective |
| topic | climate change gas emission taxation profitability investment energy source |
| url | https://www.labourline.org/KENTIKA-19302044124911202269-Climate-policy-and-stranded-ca.htm |