{"id":463,"date":"2019-10-19T07:07:17","date_gmt":"2019-10-19T12:07:17","guid":{"rendered":"https:\/\/sites.owu.edu\/envs110-198-498\/?p=463"},"modified":"2019-10-19T07:07:17","modified_gmt":"2019-10-19T12:07:17","slug":"carbon-bubble","status":"publish","type":"post","link":"https:\/\/sites.owu.edu\/envs110-198-498\/2019\/10\/19\/carbon-bubble\/","title":{"rendered":"Carbon Bubble"},"content":{"rendered":"<p><a href=\"https:\/\/sites.owu.edu\/envs110-198-498\/wp-content\/uploads\/sites\/153\/2019\/10\/11701071_10153403403617184_3548494068388749238_n.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-464\" src=\"https:\/\/sites.owu.edu\/envs110-198-498\/wp-content\/uploads\/sites\/153\/2019\/10\/11701071_10153403403617184_3548494068388749238_n.jpg\" alt=\"\" width=\"800\" height=\"600\" srcset=\"https:\/\/sites.owu.edu\/envs110-198-498\/wp-content\/uploads\/sites\/153\/2019\/10\/11701071_10153403403617184_3548494068388749238_n.jpg 800w, https:\/\/sites.owu.edu\/envs110-198-498\/wp-content\/uploads\/sites\/153\/2019\/10\/11701071_10153403403617184_3548494068388749238_n-300x225.jpg 300w, https:\/\/sites.owu.edu\/envs110-198-498\/wp-content\/uploads\/sites\/153\/2019\/10\/11701071_10153403403617184_3548494068388749238_n-768x576.jpg 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<blockquote><p>Are the world\u2019s capital markets carrying a carbon bubble? This question related to the fact that there is unburnable carbon, and some of that is owned by listed companies. In terms of carbon there is a clear overhang of fossil fuels beyond what can be burned in a 2\u00b0C scenario; there is a lively debate about the financial implications.\u00a0Some of the issues that have arisen include:<\/p>\n<ul>\n<li>Are there assets which are being valued in a manner inconsistent with the expected future scenario?<\/li>\n<li>Does the short-term bias of valuation models mean that the impact of lower-than-expected future demand is largely discounted out at present?<\/li>\n<li>Is the market capable of pricing in the complex set of factors which could affect demand and price?<\/li>\n<li>Do large diversified companies (eg mining stocks or oil majors) dilute the impact of a reduction in coal or oil revenues?<\/li>\n<li>Do current accounting rules capture the value and any potential impairment of assets in a consistent and useful manner, (eg compare mining vs oil; contrast IFRS and US GAAP)?<\/li>\n<li>If capital expenditure continues to be used to replace reserves could this lead to the inflation of a carbon bubble which would have to be corrected in a scenario of sudden drastic action to prevent dangerous climate change?<\/li>\n<\/ul>\n<\/blockquote>\n<p><strong>More: <a href=\"https:\/\/www.carbontracker.org\/terms\/carbon-bubble\/\" target=\"_blank\" rel=\"noopener\">Carbon Tracker<\/a>\u00a0and Wikipedia entry on <a href=\"https:\/\/en.wikipedia.org\/wiki\/Carbon_bubble\" target=\"_blank\" rel=\"noopener\">Carbon Bubble<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Are the world\u2019s capital markets carrying a carbon bubble? This question related to the fact that there is unburnable carbon, and some of that is owned by listed companies. In terms of carbon there is a clear overhang of <span class=\"readmore\"><a href=\"https:\/\/sites.owu.edu\/envs110-198-498\/2019\/10\/19\/carbon-bubble\/\">Continue Reading<\/a><\/span><\/p>\n","protected":false},"author":138,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-463","post","type-post","status-publish","format-standard","hentry","category-concepts-ideas"],"_links":{"self":[{"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/posts\/463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/users\/138"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/comments?post=463"}],"version-history":[{"count":1,"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/posts\/463\/revisions"}],"predecessor-version":[{"id":465,"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/posts\/463\/revisions\/465"}],"wp:attachment":[{"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/media?parent=463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/categories?post=463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.owu.edu\/envs110-198-498\/wp-json\/wp\/v2\/tags?post=463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}