Abstract
Thoroughly assessing the owners and distribution of stranded assets in a 2 °C scenario is essential to anticipate climate policy resistance. We employ novel data to analyze owners and incidence of asset stranding in the power sector globally. We show that Asia-Pacific, Europe, and the US are highly exposed to stranded assets, especially coal plants. Stranded assets are highly concentrated in a few asset owners in some countries (e.g., India). Even if owners are more equally exposed (e.g., in the US) they can vary considerably in the asset stranding timing due to differences in plant fleets’ age profile. European, US, and Chinese asset owners own large shares of stranded coal plants abroad. Listed owners may face stranded assets of up to 78% of their share price or more than 80% of their equity. Asset stranding exposure positively correlates with ownership of alternative energy assets. India stands out owning many stranded assets but little alternative energy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.