Institute for New Economic Thinking (INET), Smith School of Enterprise and the Environment (SSEE), Inter-American Development Bank (IDB), GGKP Annual Conference
While it is acknowledged that asset stranding could jeopardize the political feasibility of climate policies, the amount of stranded assets is rarely made explicit in most decarbonization pathways. This paper introduces a novel method that extracts, for every given energy sector transition scenario, the implicit amount of new power generation capacity that is added every year, and the required amount of stranding if this scenario is to be in line with its projected generation mix.
