Carbon Capture and a Commercial Market for CO 2

Thomas Sadler ()

International Advances in Economic Research, 2013, vol. 19, issue 2, 189-200

Abstract: With increasing evidence that the earth is warming at a faster rate than previously expected, there is pressure to reduce carbon dioxide (CO 2 ) emissions on a large scale. Because carbon capture helps to internalize the CO 2 externality, economists have begun to evaluate its potential. Two possibilities exist: carbon capture and storage (CCS), where CO 2 is sequestered, usually underground; and the development of a commercial market, where CO 2 is used for transformation into calcium carbonate, biofuels, air conditioning, or other market options. This paper contrasts CCS with the development of a commercial market for CO 2 and finds that the commercial market holds many advantages: internalization of the pollution externality, addressing the innovation externality, and revenue generation. Depending on the development of the commercial market, revenue from the sale of CO 2 could partially or fully offset the cost of innovation in carbon capture technology. Copyright International Atlantic Economic Society 2013

Keywords: Carbon capture; Carbon policy; Commercial market for CO 2; Innovation; Q54; Q55; Q58 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11294-013-9401-8 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:iaecre:v:19:y:2013:i:2:p:189-200:10.1007/s11294-013-9401-8

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11294

DOI: 10.1007/s11294-013-9401-8

Access Statistics for this article

International Advances in Economic Research is currently edited by Katherine S. Virgo

More articles in International Advances in Economic Research from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().