Knowledge Tree
Relations (1)
related 3.00 — strongly supporting 7 facts
Resource-rich developing countries are economically dependent on the export and revenue of fossil fuels [1], [2], which creates significant challenges for economic diversification [3] and makes them vulnerable to asset stranding as global demand shifts [4], [5]. Consequently, these nations are central to policy discussions regarding the transition from fossil fuels to renewable energy [6], [7].
Facts (7)
Sources
Energy asset stranding in resource-rich developing countries and ... frontiersin.org 7 facts
claimResource-rich developing countries (RRDC) are significantly exposed to decreases in fossil fuel demand induced by climate policy because oil and gas revenues contribute substantially to their Gross Domestic Product (GDP).
perspectiveInternational compensation payments for leaving fossil fuels in the ground are considered a 'silo solution' that lacks a 'silver bullet' quality for addressing asset stranding in resource-rich developing countries.
claimAsset stranding is a multi-faceted problem that particularly affects resource-rich developing countries (RRDCs) due to their heavy dependence on fossil fuels, limited prospects for economic diversification, inadequate political and social support structures, the presence of vulnerable populations, and the amplifying effects of the resource curse.
referenceResource-rich developing countries face a dilemma where they acknowledge the negative aspects of relying on fossil fuel sectors but lack alternative options for revenue and jobs.
claimResource-rich developing countries often become heavily reliant on exporting natural resources like fossil fuels or minerals, leading to economies that are dependent on revenue from these exports.
claimPromoting the shift from fossil fuel to renewable energy economies is a promising policy goal to address the impacts of asset stranding in resource-rich developing countries (RRDCs), as it aligns with global South and North energy transition plans and sustainable development goals.
claimResource-rich developing countries (RRDC) encounter greater difficulty diversifying their economies away from fossil fuels compared to industrial countries because their economies specialize in the resource sector, concentrating productive assets and human capital there, and because they often suffer from 'Dutch disease,' where currency appreciation reduces the competitiveness of non-resource sectors.