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Will the bursting of the carbon bubble cause a financial crisis?

Graham Watson

5th June 2018

This is classic Guardian: but it might be a significant issue, nonetheless. The so-called 'carbon bubble' reflects a view that lots of companies whose value rests on their current share price will see that value disappear as the global economy moves towards a low-carbon world.

If this happens quickly, it's argued that this could trigger a financial crisis. However, if it were slower, you'd expect that much of this will be obviated - the value of these companies is likely to be shifted to new, carbon-friendly companies.

More here from this BBC news article

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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