Stranded fossil-fuel assets translate to major losses for investors in advanced economies
University of London · University of Sussex · +10 more institutions
Abstract
Abstract The distribution of ownership of transition risk associated with stranded fossil-fuel assets remains poorly understood. We calculate that global stranded assets as present value of future lost profits in the upstream oil and gas sector exceed US$1 trillion under plausible changes in expectations about the effects of climate policy. We trace the equity risk ownership from 43,439 oil and gas production assets through a global equity network of 1.8 million companies to their ultimate owners. Most of the market risk falls on private investors, overwhelmingly in OECD countries, including substantial exposure through pension funds and financial markets. The ownership distribution reveals an international…
Citation impact
- FWCI
- 42.67
- Percentile
- 100%
- References
- 37
Authors
10- GSGregor SemieniukCorresponding
University of London, University of Sussex, University of Massachusetts Amherst, SOAS University of London
- PBPhilip B. Holden
The Open University
- JMJean-François Mercure
University of Exeter, University of Cambridge, Cambridge Econometrics (United Kingdom)
- PSPablo Salas
University of Cambridge, Institute for Sustainability
- HPHector Pollitt
University of Cambridge, Cambridge Econometrics (United Kingdom)
Topics & keywords
- Business
- Fossil fuel
- Equity (law)
- Financial crisis
- Upstream (networking)
- Asset (computer security)
- Production (economics)
- Distribution (mathematics)
- Climate action