Green bubble

This article needs to be updated. Please help update this article to reflect recent events or newly available information. (August 2023)

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The green bubble is an economic theory that the world is facing an over-investment in renewable energy and that the current levels of debts in many clean technology companies are unsustainable. As the interest rate rises many clean technology projects will go bust, a major setback for the renewable energy industry.

The term has been mentioned by several experts and articles, such as The Green Bubble^[1] written by Per Wimmer, a Wired article^[2] discussing the fates of solar energy companies such as Solyndra, and a New Republic article by Ted Nordhaus and Michael Shellenberger covering the phenomenon.^[3]

Others disagree with the theory of a green bubble and claim the industry will face lower costs from technological improvements and economies of scale as larger companies merge the smaller and less competitive companies.