Frictional Costs of Fossil Fuel Divestment

“The need to sell additional assets under a conventional divestment scenario arises because many investors hold substantial portions of their portfolio in funds of various types, including mutual funds, commingled funds, limited partnerships in private equity funds, and so on. If a fund includes fossil fuel assets that must be divested, it is generally not possible for an investor to sell only selected parts of the fund”

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