Capital Stranding Cascades

This report introduces a methodological framework using Input-Output and network theory to analyze physical capital stranding risks and their cascades across economic systems, specifically within a sample of ten European countries.

• The report establishes a new methodological framework that integrates Input-Output (IO) and network theory to identify sectors that trigger capital stranding cascades and those most vulnerable to such risks.
• In a study of ten European countries, mining is identified as one of the sectors with the highest external asset stranding multipliers. Decarbonisation-triggered stranding primarily affects electricity and gas, coke and refined petroleum products, basic metals, and transportation, with subsequent cascades into chemicals, metal products, motor vehicles, water and waste services, wholesale and retail trade, and public administration.
• The lower-bound estimate for assets at risk of transition-related stranding across the sampled countries ranges from 0.6% to 8.2% of the total productive capital stock, with the highest concentrations in mining, manufacturing, and the electricity and gas sector.

APA

Stockholm Environment Institute (2019). Capital Stranding Cascades. https://www.sei.org/publications/capital-stranding-cascades/

Chicago

Stockholm Environment Institute. Capital Stranding Cascades. 2019. https://www.sei.org/publications/capital-stranding-cascades/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Capital Stranding Cascades |date=6 March 2019 |url=https://www.sei.org/publications/capital-stranding-cascades/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2019capital, author = {{Stockholm Environment Institute}}, title = {{Capital Stranding Cascades}}, institution = {Stockholm Environment Institute}, year = {2019}, month = mar, url = {https://www.sei.org/publications/capital-stranding-cascades/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }