Credit: BBC
With widespread installation of solar, wind farms & other renewable sources of electricity, coal is becoming less attractive to investors. In an article published in The Wall Street Journal, Al Gore & David Blood, claim that coal may become a stranded asset. I.e. "... an asset that has become obsolete, or non-performant, but must be recorded on the balance sheet as a loss of profit. The term has particular relevance to pricing long-term economic and environmental sustainability." — Wikipedia
http://www.greencarreports.com/news/1088081_gore-and-blood-coal-is-becoming-a-stranded-asset / power station Gore Blood our energy future stranded assets those lose economic value anticipated useful life reserves fossil fuels particularly coal unused value values fall decrease legislation legislative technology improvements obsolescence petroleum future stranded asset regulation education automotive industry spending more cut contribution climate change form emitted carbon regulatory regulation side influenced carbon budgets budget limits limit restrict carbon output energy usage use company companies industry long term long-term carbon budgets reduce fossil fuel use existing fuel reserves monetized authors suggest cause the current energy market energy-market bubble burst investors see perceive value assets will fall Al Gore David Blood writing The Wall Street Journal carbon based carbon-based energy investors same mistake invest investment invested sub-prime mortgages global economic crisis 2007 2008 ignore risk stranded carbon assets government governments governmental policy attempts mitigate effects climate change coal reserves viewed as valuable major part electricity electrical electric energy generation particularly susceptible stranded-asset stranded asset risk regulation advances technology green greener options fixing fix problem best option divestment encouraging investors away from portfolios carry high carbon related carbon-related risks risk towards low risk reduce reduced alternative energy convinced by climate change global warming green house greenhouse green-house effect carbon dioxide CO2 arguments change changes government governmental policy invest investing industry increasing increasingly expensive regulation political economic outlook renewable energy becoming cost competitive cost-competitive subsidy subsidies future success alternative energy base based regulation regulatory mandates energy companies company looking towards alternatives investors invest investment coal exports reducing reduction dropping USA U.S. coal-heavy China reduce pollution problems hint fairly value coal decline future investors overlooking risk stranded assets asset bottom line continued use carbon-based fuel fuels economic /
