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Stranded Assets and Resource Rents: Between Flaws, Dependency, and Economic Diversification

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  • Dawud Ansari
  • Ambria Fareed

Abstract

Asset stranding–the unanticipated depreciation of assets (e.g. resource re-serves, infrastructure, stocks) due to market shifts such as policy interventions or innovation–is at the core of current debates in energy and climate. This roundup presents prominent contributions to the discussion with a focus on fuel-exporting economies. We discuss strengths and limits of the concept as well as potential conceptual flaws and the perspective of resource-exporting coun-tries. The discussion highlights that the debate neglects the adaptation by mar-ket players to changing conditions. However, and despite the conceptual short-comings, (economic) diversification figures and energy outlooks show that the (potential) issue is too big to ignore for resource owners and the international community.

Suggested Citation

  • Dawud Ansari & Ambria Fareed, 2019. "Stranded Assets and Resource Rents: Between Flaws, Dependency, and Economic Diversification," DIW Roundup: Politik im Fokus 136, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwrup:136en
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    References listed on IDEAS

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    1. Aleksandar Zaklan & Dawud Ansari & Claudia Kemfert, 2018. "Rohölmarkt: Iran-Sanktionen dürften zu moderatem Preisanstieg führen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 85(49), pages 1053-1059.
    2. Ansari, Dawud, 2017. "OPEC, Saudi Arabia, and the shale revolution: Insights from equilibrium modelling and oil politics," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 111, pages 166-178.
    3. Albassam, Bassam A., 2015. "Economic diversification in Saudi Arabia: Myth or reality?," Resources Policy, Elsevier, vol. 44(C), pages 112-117.
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