Stranded Asset Risk and Political Uncertainty: The Impact of the Coal Phase-out on the German Coal Industry
Miriam Breitenstein,
Carl-Philipp Anke,
Duc Khuong Nguyen and
Thomas Walther
Working Papers from Utrecht School of Economics
Abstract:
We assess the value of stranded coal-fired power plants in Germany due to the critical phase-out by 2038. Within a Monte Carlo simulation, the scenarios under consideration (a slow decommissioning at the end of the technical lifetime in 2061, the highly probable phase-out by 2038, and an accelerated phase-out by 2030) are additionally assigned distributions to display the uncertainty of future developments. The results show an overall stranded asset value of €0.4 billion given the phase-out by 2038 and additional €14.3 billion if the phase-out is brought forward by eight years. This study also depicts the impacts of carbon pricing and the feed-in from renewable energy sources on the merit order and eventually the deterioration in economic conditions for hard coal and lignite power plants. Lastly, we illustrate immediate concerns for share prices of affected companies and contributes to closing the research gap between stranded physical and financial assets.
Keywords: Coal Phase-out; Energy transition; Germany; Stranded Assets (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)
Downloads: (external link)
https://dspace.library.uu.nl/bitstream/handle/1874/415095/SSRN_id3604984_1_.pdf
Related works:
Journal Article: Stranded Asset Risk and Political Uncertainty: The Impact of the Coal Phase-Out on the German Coal Industry (2022) 
Working Paper: Stranded Asset Risk and Political Uncertainty: The Impact of the Coal Phase-out on the German Coal Industry (2019) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:use:tkiwps:2002
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Utrecht School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Marina Muilwijk ().