https://www.sciencedaily.com/releases/2018/06/180604121041.htm

This transition will result in clear winners, importers such as China and the EU, and losers, exporters such as Russia, the USA or Canada, which could see their fossil-fuel industries nearly shut down. If these countries keep up their investment and production levels despite declining demand, the global wealth loss could be huge: 1-4 trillion dollars, a loss comparable to that which triggered the financial crisis in 2007. Even the USA could not pull out from the transition, as it would only hurt itself even more. Global climate policy is therefore no longer a 'prisoner's dilemma' game. These findings by researchers from Radboud University, the University of Cambridge (C-EENRG), Cambridge Econometrics, The Open University (UK) and the University of Macau are published in Nature Climate Change.

Several major economies rely heavily on fossil-fuel production and exports. The price of fossil-fuel companies' shares is calculated under the assumption that all fossil-fuel reserves will be consumed. But to do so would be inconsistent with the tight carbon budget set in the 2015 Paris Agreement, which limits the increase in global average temperature to 'well below 2°C above pre-industrial levels'. So far, this prospect has not deterred continuing investment in fossil fuels because many believe that climate policies will not be adopted, or at least not in the near future.