The carbon bubble and the eventual pop.
Excellent article about how there is a looming bubble in the caarbon-based economy. As soon as people realize that carbon-based energy is going away, the resulting devaluation may just crash the economy. This may happen sooner than we think.
If we cant burn oil, its not worth very much. If we cant defend coastal real estate from rising seas (or even insure it, for that matter), its not worth very much. If the industrial process a company owns exposes them to future climate litigation, its not worth very much. The value of those assets is going to plummet, inevitably
and likely, soon.
Currently, though, these assets are valued very highly. Oil is seen as hugely valuable, coastal real estate is seen as hugely valuable, industrial patents are seen as hugely valuable.
When theres a large difference between how markets think assets should be valued and what they are (or will) actually be worth, we call it a bubble.
Experts now call the differences between valuations and worth in fossil fuel corporations, climate-harmful industries and vulnerable physical assets the Carbon Bubble. It is still growing.
And heres the thing about bubbles: they always pop.
https://medium.com/@AlexSteffen/trump-putin-and-the-pipelines-to-nowhere-742d745ce8fd#.tg6xzirkj
Worthwhile read...