Carbon capture: Storage vs. Utilization

Michel Moreaux, Jean-Pierre Amigues, Gerard van der Meijden and Cees Withagen

Journal of Environmental Economics and Management, 2024, vol. 125, issue C

Abstract: Carbon capture and storage in salt domes or in inactive fields is seen as an appealing option to meet the ambitious objectives of the Paris Agreement. Captured CO2 emissions can also be injected in active fields to enhance gas or oil recovery. We examine the optimal scale and timing of these different capturing and storage options in a dynamic model of an economy subject to a carbon budget. We consider the socially optimal outcome as well as the outcome under laissez-faire. The social optimum can have different forms depending on the initial carbon budget, the fossil fuel resource stock and the stock of already injected CO2 in active fields. The level and convexity of the costs of capturing, storing and producing renewable energy plays a role as well. We specify the conditions under which each possible sequence of regimes – no capturing, only enhanced recovery, only storage without enhanced recovery, a combination of both or only renewables – occurs. We quantify our analytical results by calibrating the model and running simulations.

Keywords: Global warming; Carbon capture and storage; Enhanced recovery; Non-renewable resources; Renewable resources (search for similar items in EconPapers)
JEL-codes: Q30 Q35 Q42 Q54 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0095069624000500
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Carbon capture: Storage vs. Utilization (2024)
Working Paper: Carbon Capture: Storage vs. Utilization
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:125:y:2024:i:c:s0095069624000500

DOI: 10.1016/j.jeem.2024.102976

Access Statistics for this article

Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

More articles in Journal of Environmental Economics and Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().