IDEAS home Printed from https://ideas.repec.org/a/taf/ctwqxx/v39y2018i3p436-453.html
   My bibliography  Save this article

Climate change: the risks of stranded fossil fuel assets and resources to the developing world

Author

Listed:
  • Kyra Bos
  • Joyeeta Gupta

Abstract

Under the Paris Agreement, 80% of all proven fossil fuel reserves become stranded resources and investments already made in such resources turn into stranded assets. Much of the existing literature focuses on equitable burden sharing; only a few articles examine the risks for developing countries that invest in new fossil fuels. Hence, this paper addresses the question: What are the risks of investing in fossil fuels for developing countries? In doing so, it examines Kenya, a prospective fossil fuel producer, and China, an investor in fossil fuels. In terms of short- to long-term risks, ignoring new fossil fuels and investing in renewables is favourable and politically, socially, ecologically and economically more rewarding, not least because latecomers to development run the risk of having to compensate investors when new fossil fuel assets strand prematurely and become unrecoverable.

Suggested Citation

  • Kyra Bos & Joyeeta Gupta, 2018. "Climate change: the risks of stranded fossil fuel assets and resources to the developing world," Third World Quarterly, Taylor & Francis Journals, vol. 39(3), pages 436-453, March.
    • Handle: RePEc:taf:ctwqxx:v:39:y:2018:i:3:p:436-453
    DOI: 10.1080/01436597.2017.1387477
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01436597.2017.1387477
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01436597.2017.1387477?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miriam Breitenstein & Carl-Philipp Anke & Duc Khuong Nguyen & Thomas Walther, 2022. "Stranded Asset Risk and Political Uncertainty: The Impact of the Coal Phase-Out on the German Coal Industry," The Energy Journal, , vol. 43(5), pages 27-50, September.
    2. Michael Lazarus & Harro van Asselt, 2018. "Fossil fuel supply and climate policy: exploring the road less taken," Climatic Change, Springer, vol. 150(1), pages 1-13, September.
    3. Joyeeta Gupta & Arthur Rempel & Hebe Verrest, 2020. "Access and allocation: the role of large shareholders and investors in leaving fossil fuels underground," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 20(2), pages 303-322, June.
    4. Ansari, Dawud & Holz, Franziska, 2020. "Between stranded assets and green transformation: Fossil-fuel-producing developing countries towards 2055," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 130, pages 1-1.
    5. Keston K. Perry, 2021. "Financing a Global Green New Deal: Greening Capitalism or Taming Financialization for a New ‘Civilizing’ Multilateralism?," Development and Change, International Institute of Social Studies, vol. 52(4), pages 1022-1044, July.
    6. Draeger, Rebecca & Cunha, Bruno S.L. & Müller-Casseres, Eduardo & Rochedo, Pedro R.R. & Szklo, Alexandre & Schaeffer, Roberto, 2022. "Stranded crude oil resources and just transition: Why do crude oil quality, climate ambitions and land-use emissions matter," Energy, Elsevier, vol. 255(C).
    7. Joyeeta Gupta & Courtney Vegelin, 2023. "Inclusive development, leaving no one behind, justice and the sustainable development goals," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 23(2), pages 115-121, June.
    8. Löffler, Konstantin & Burandt, Thorsten & Hainsch, Karlo & Oei, Pao-Yu, 2019. "Modeling the low-carbon transition of the European energy system - A quantitative assessment of the stranded assets problem," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26, pages 1-15.
    9. Pegels, Anna & Altenburg, Tilman, 2020. "Latecomer development in a “greening” world: Introduction to the Special Issue," World Development, Elsevier, vol. 135(C).
    10. Gertz, Geoffrey & Jandhyala, Srividya & Poulsen, Lauge N. Skovgaard, 2018. "Legalization, diplomacy, and development: Do investment treaties de-politicize investment disputes?," World Development, Elsevier, vol. 107(C), pages 239-252.
    11. Joyeeta Gupta & Arthur Rempel & Hebe Verrest, 0. "Access and allocation: the role of large shareholders and investors in leaving fossil fuels underground," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 0, pages 1-20.
    12. Wei, Yu & Zhang, Jiahao & Bai, Lan & Wang, Yizhi, 2023. "Connectedness among El Niño-Southern Oscillation, carbon emission allowance, crude oil and renewable energy stock markets: Time- and frequency-domain evidence based on TVP-VAR model," Renewable Energy, Elsevier, vol. 202(C), pages 289-309.
    13. Maamoun, Nada & Kennedy, Ryan & Jin, Xiaomeng & Urpelainen, Johannes, 2020. "Identifying coal-fired power plants for early retirement," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ctwqxx:v:39:y:2018:i:3:p:436-453. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ctwq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.