CCUS Technology and Carbon Emissions: Evidence from the United States

Min Thura Mon, Roengchai Tansuchat () and Woraphon Yamaka
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Roengchai Tansuchat: Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand
Woraphon Yamaka: Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand

Energies, 2024, vol. 17, issue 7, 1-18

Abstract: Carbon Capture, Utilization, and Storage (CCUS) represents a vital technology for addressing pressing global challenges such as climate change and carbon emissions. This research aims to explore the relationship between the CCUS capability and carbon emissions in the United States considering thirteen predictors of CCUS and carbon emissions. Incorporating these predictors, we aim to offer policymakers insights to enhance CCUS capabilities and reduce carbon emissions. We utilize diverse econometric techniques: OLS, Lasso, Ridge, Elastic Net, Generalized Method of Moments, and Seemingly Unrelated Regression. Elastic Net outperforms the other models in explaining CCUS, while OLS is effective for carbon emissions. We observe positive impacts of the number of projects and foreign direct investment on the CCUS capacity, but limited influence from the CCUS technology level. However, the relationship between the CCUS capacity and carbon emissions remains limited. Our study highlights the importance of incentivizing projects to increase CCUS capabilities and recognizes the critical role of legal and regulatory frameworks in facilitating effective CCUS implementation in the US. Moreover, we emphasize that achieving decarbonization goals necessitates the development of affordable green alternatives. It is essential to view CCUS as a complementary, rather than a sole, solution for emission reduction as we work towards achieving net-zero emission targets.

Keywords: CCUS; CCUS capacity; carbon emissions; macroeconomy; energy consumption (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (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)

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