Authors
Simon Mills & Greg Ford
This paper explores the concept of a ‘carbon bubble’ - the concept that the valuation of companies dependent on fossil-fuel-based energy production is currently inflated, because investors are failing to take into account the stock market valuation implications of climate change. The authors examine some initial data that reveals which financial centres are most exposed to risks associated with a potential bursting of the carbon bubble, look at how fossil fuel disinvestment may catalyse these risks, and report survey findings that show enthusiasm for policymakers to support fossil fuel disinvestment with various policy tools.