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New study: Loss of fossil fuel assets would not impoverish general public

In a new study in Joule reported by The Guardian, an argument on the economic impact of ending fossil fuel exploitation has been debunked. Contrary to the idea that ending fossil fuel production would cause an economic slum, transitioning away from fossil fuels will not burden the middle and popular classes but will predominantly affect the wealthiest individuals and corporations. Surprise!
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The study reveals that the potential losses from stranded fossil fuel assets primarily impact the portfolios of the affluent as they are the ones that have the resources to invest in these industries. As the world shifts towards cleaner energy sources, these assets risk losing value, posing significant financial risks for those heavily invested in the fossil fuel industry. Conversely, redirecting investments towards renewable energy and sustainable practices offers an opportunity to safeguard the middle and popular classes while creating a more equitable economic future.
Figure: Distribution of stranded assets across the wealth distribution
Figure: Distribution of stranded assets across the wealth distribution

By investing in clean technologies, governments and businesses can stimulate job growth and foster innovation in sustainable industries. This transition ensures that economic prosperity is not concentrated in the hands of a select few but rather benefits society as a whole. For example in the US, two-thirds of the financial losses from lost fossil fuel assets would affect the top 10% of wealth holders, with half of that affecting the top 1%.
The study highlights the potential for a more inclusive and resilient economy. By divesting from fossil fuels and supporting renewable energy initiatives, leaders can level the playing field, empowering the middle and popular classes while driving sustainable growth.
The notion that ending fossil fuel exploitation will lead to an economic crisis is misleading and disproportionately favours the interests of the wealthy. It explains a lot right?




https://www.cell.com/joule/fulltext/S2542-4351(23)00220-9



Do you agree?

147 more agrees trigger scaled up advertising

  • Rukia Ahmed Abdi

    50 w

    I am in agreement with this

    2
    • Daniel Waweru

      50 w

      In agreement

      8
      • Komu Daniel

        50 w

        I agree

        4
        • We Don't Have Time

          50 w

          Dear Sarah Chabane Thank you for getting your climate love to level 2! We have reached out to Joule and requested a response. I will keep you updated on any progress! /Adam We Don't Have Time

          5
          • Videlis Eddie

            50 w

            I agree 💯

            7
            • Munene Mugambi

              50 w

              No matter the cost, we need to transition from fossil fuels

              6
              • Kevin

                50 w

                Totally agree

                14
                • walter lungayi

                  50 w

                  I gree with this

                  14
                  • Marine Stephan

                    50 w

                    This is such an interesting study! So what are governments waiting for???

                    5
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