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How best to make the transition from a high- to low-carbon economy remains open for debate, involving complex dynamics that go beyond basic models of emissions abatement. It is these dynamics that the authors aim to analyse with the model they develop in this paper, showing that it is optimal to repurpose and strand a substantial amount of capital. Read more

Containing global temperature rise to well below 2°C would require keeping a large proportion of existing fossil fuel reserves in the ground. This would result in fossil fuel resources that cannot be burned and fossil fuel infrastructure that is no longer used – these are known as ‘stranded assets’. Read more

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