Carbon Bubble

Bubble might not be the right word.

If the polluter pays principle is enforced it will definitely lower the valuation of the fossil fuel industry, and perhaps this has some collective phase transition behavior.

The classic bubble though is exponential and autocatalytic and tends to involve an unreasonable excursion in the price/earnings ratio.

Another factor is that "the next thing" will certainly involve some fossil fuel businesses who (1) recognize the need for the next thing and (2) have expertise in technology that is part of the new thing but is used in the old thing. Some examples are solar energy investment by oil companies such as bp, the fact that geothermal exploitation involves the same drilling tech as oil and gas or oil services companies such as Kerr McGee that got caught up in the 1970s "nuclear bubble"