New Publication - von Dulong, Gard-Murray, Hagen, Jaakkola, Sen: Stranded Assets: Research Gaps and Implications for Climate Policy
von Dulong, Angelika, Alexander Gard-Murray, Achim Hagen, Niko Jaakkola, and Suphi Sen. 2023. ‘Stranded Assets: Research Gaps and Implications for Climate Policy’. Review of Environmental Economics and Policy 17 (1): 161–69. https://doi.org/10.1086/723768 
Introduction: Why Do Stranded Assets Matter?
Decarbonization requires ambitious climate policies that put fossil fuel–dependent assets at risk. When risks materialize as unanticipated declines in value and capital is too costly to reallocate, assets are “stranded” (van der Ploeg and Rezai 2020b).We argue that increased attention to asset stranding and related political frictions in climate economics will yield policy relevant insights that are mindful of political constraints. We focus on assets threatened by mitigation policy.1 Fossil reserves face the most obvious risks: meeting the 27C target requires stranding 80 percent of coal reserves (McGlade and Ekins 2015), and plausible policies could strand over $1 trillion in the upstream oil and gas sector (Semieniuk et al. 2022). Climate change mitigation also threatens carbon-intensive firms, especially energy firms (Guivarch and Hood 2011). Fossil power plants worth $1.4 trillion may be stranded (Edwards et al. 2022). Human capital, residential property, durable goods, urban infrastructure, and many other asset types also face stranding risks. .....