Politics, profits and climate policies: How much is at stake for fossil fuel producers?

Eisenack, Klaus; Hagen, Achim; Mendelevitch, Roman; Vogt, Anne

doi:10.1016/j.erss.2021.102092

Cited by 14 publications

(5 citation statements)

References 34 publications

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“…At the same time, however, it requires a number of assumptions including the development of prices, demand, and behavior, input substitution between energy sources, as well as changes in costs, policies, and technological progress. Further, lost profits are highly dependent on the policy design 2 . For a global analysis, individual assumptions for every power plant, country or region may be necessary for this measure.…”

Section: Methodsmentioning

confidence: 99%

Concentration of asset owners exposed to power sector stranded assets may trigger climate policy resistance

von Dulong

2023

Nat Commun

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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.

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Section: Methodsmentioning

confidence: 99%

Concentration of asset owners exposed to power sector stranded assets may trigger climate policy resistance

von Dulong

2023

Nat Commun

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“…Unilaterally ending fossil fuel production is feared to mean foregoing future revenues and profits from fossil fuel extraction as first-order effect. This fear is prominent even though Eisenack et al (2021) show that supply side policies can actually raise fossil producer profits because of the restricted supply and raising prices.…”

Section: Research On Mitigation Measures Is Rarementioning

confidence: 99%

Energy asset stranding in resource-rich developing countries and the just transition - A framework to push research frontiers

Hoffart,

Holz

2024

Front. Environ. Econ.

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Climate policy will inevitably lead to the stranding of fossil energy assets such as production and transport assets for coal, oil, and natural gas. Resource-rich developing countries are particularly affected, as they have a higher risk of asset stranding due to strong fossil dependencies and wider societal consequences beyond revenue disruption. However, there is only little academic and political awareness of the challenge to manage the asset stranding in these countries, as research on transition risk like asset stranding is still in its infancy. We provide a research framework to identify wider societal consequences of fossil asset stranding. We apply it to a case study of Nigeria. Analyzing different policy measures, we argue that compensation payments come with implementation challenges. Instead of one policy alone to address asset stranding, a problem-oriented mix of policies is needed. Renewable hydrogen and just energy transition partnerships can be a contribution to economic development and SDGs. However, they can only unfold their potential if fair benefit sharing and an improvement to the typical institutional problems in resource-rich countries, such as the lack of rule of law, are achieved. We conclude with presenting a future research agenda for the global community and academia.

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“…Moreover, the implementation of these policies can be influenced by economic factors. Further research, as exemplified by Eisenack et al, delves into the repercussions of climate policies on fossil fuel producers [18]. This research highlights the effects of various types of climate policies, including demand-side and supply-side policies, on the financial losses incurred by fossil fuel producers.…”

Section: Introductionmentioning

confidence: 96%

Comparison of Atmospheric Carbon Dioxide Concentrations Based on GOSAT, OCO-2 Observations and Ground-Based TCCON Data

Zheng,

Zhang,

Zhang

2023

Remote Sensing

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Carbon dioxide (CO2) is one of the most significant greenhouse gases, and its concentration and distribution in the atmosphere have always been a research hotspot. To study the temporal and spatial characteristics of atmospheric CO2 globally, it is crucial to evaluate the consistency of observation data from different carbon observation satellites. This study utilizes data from the Total Carbon Column Observing Network (TCCON) to verify the column-averaged dry air mole fractions of atmospheric CO2 (XCO2) retrieved by satellites from October 2014 to May 2016, specifically comparing the XCO2 distributions from the Greenhouse Gases Observing Satellite (GOSAT) and Orbiting Carbon Observatory 2 (OCO-2). Our analysis indicates a strong correlation between the TCCON and both the GOSAT (correlation coefficient of 0.85) and OCO-2 (correlation coefficient of 0.91). Cross-validation further reveals that the measurements of the GOSAT and OCO-2 are highly consistent, with an average deviation and standard deviation of 0.92 ± 1.16 ppm and a correlation coefficient of 0.92. These differences remain stable over time, indicating that the calibration in the data set is reliable. Moreover, monthly averaged time-series and seasonal climatology comparisons were also performed separately over the six continents, i.e., Asia, North America, Europe, Africa, South America, and Oceania. The investigation of monthly XCO2 values across continents highlights greater consistency in Asia, North America, and Oceania (standard deviation from 0.15 to 0.27 ppm) as compared to Europe, South America, and Africa (standard deviation from 0.45 to 0.84 ppm). A seasonal analysis exhibited a high level of consistency in spring (correlation coefficient of 0.97), but lower agreement in summer (correlation coefficient of 0.78), potentially due to cloud cover and aerosol interference. Although some differences exist among the datasets, the overall findings demonstrate a strong correlation between the satellite measurements of XCO2. These results emphasize the importance of continued monitoring and calibration efforts to ensure the accurate assessment and understanding of atmospheric CO2 levels.

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Politics, profits and climate policies: How much is at stake for fossil fuel producers?

Cited by 14 publications

References 34 publications

Concentration of asset owners exposed to power sector stranded assets may trigger climate policy resistance

Concentration of asset owners exposed to power sector stranded assets may trigger climate policy resistance

Energy asset stranding in resource-rich developing countries and the just transition - A framework to push research frontiers

Comparison of Atmospheric Carbon Dioxide Concentrations Based on GOSAT, OCO-2 Observations and Ground-Based TCCON Data

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