Does neglecting the possibility that fossil fuel reserves become "stranded" result in a "carbon bubble", i.e., an overvaluation of fossil fuel firms? To address this question, we study whether banks price the climate policy risk. We hand collect global data on corporate fossil fuel reserves, match it with syndicated loans, and subsequently compare the loan rate charged to fossil fuel firms -along their climate policy exposure -to non-fossil fuel firms. We find that before 2015 banks did not price climate policy risk. After 2015, however, the risk is priced, especially for firms holding more fossil fuel reserves. We also provide some evidence that "green banks" charge marginally higher loan rates to fossil fuel firms.
The concept Material Input per Service Unit (MIPS) was developed 20 years ago as a measure for the overall natural resource use of products and services. The material intensity analysis is used to calculate the material footprint of any economic activities in production and consumption. Environmental assessment has developed extensive databases for life cycle inventories, which can additionally be adopted for material intensity analysis. Based on practical experience in measuring material footprints on the micro level, this paper presents the current state of research and methodology development: it shows the international discussions on the importance of accounting methodologies to measure progress in resource efficiency. The MIPS approach is presented and its micro level application for assessing value chains, supporting business management, and operationalizing sustainability strategies is discussed. Linkages to output-oriented Life Cycle Assessment as well as to Material Flow Analysis (MFA) at the macro level are pointed out. Finally we come to the conclusion that the MIPS approach provides relevant OPEN ACCESS Resources 2014, 3 545 knowledge on resource and energy input at the micro level for fact-based decision-making in science, policy, business, and consumption.
We use cluster analysis and material flow accounting to describe patterns of resource use in German households. Data on socio-demographic characteristics, and expenditures on fuel, electricity and household equipment allow for a differentiation of seven different household types. The corresponding resource use, expressed in Material Footprint per person and year, is calculated based on cradle-to-gate material flows of average household goods. Our results show that patterns of resource use are mainly driven by the use of fuel and electricity and the ownership of cars. The quantified Material Footprints correlate to higher social status and are also linked to city size, age and household size. Affluent, established and/or younger families living in rural areas typically show the highest amounts of durables and expenditures on non-durables, thus exhibiting the highest use of natural resources.
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