Topic updates

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

5th June 2018

Share this content:

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.

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.

Explore

More for students

Teaching Economics

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

Graham Watson

You might also like

Micro and Macro Case Study: Norway and Climate Change

In the News Teaching Activity – the environmental costs of fast fashion and how these can be reduced (May 2025)

Delhi’s Deadly Air: A Breathless Economy Suffocates Under the Weight of Negative Externalities

Green Economics and Green Economic Policies

What is an asset bubble?

Environmental Economics - Can Stress Planting of Trees cause Government Failure?

Market Failure and Government Intervention - The row over London’s ultra-low emission zone

Wind of Change - Bill Gates backs Australian start-up targeting cow burps

Explore

More for students

Subjects

Quick links

Student events & courses

Teaching Economics

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

Graham Watson

You might also like