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Jennifer Morris, Haroon Kheshgi, Sergey Paltsev and Howard Herzog
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Jennifer Morris: Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge MA 02139, USA
Haroon Kheshgi: #x2020;ExxonMobil Research and Engineering Company, 1545 Route 22 East, Annandale NJ 08801, USA
Sergey Paltsev: Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge MA 02139, USA
Howard Herzog: Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge MA 02139, USA

Climate Change Economics (CCE), 2021, vol. 12, issue 01, 1-29

Abstract: Using the MIT Economic Projection and Policy Analysis (EPPA) model, we explore factors influencing carbon capture and storage (CCS) deployment in power generation and its role in mitigating carbon emissions. We find that in the 2∘C scenario with EPPA’s base-case technology cost and performance assumptions, CCS plays an important role in the second half of the century: by 2100 CCS is applied to almost 40% of world electricity production, with a third coming from coal with CCS and the other two-thirds from gas with CCS. Results on CCS deployment depend on the assumed fraction of carbon captured in CCS power plants, as emissions constraints get tighter and the carbon price rises. Adding options for higher capture fractions or offsetting uncaptured emissions leads to greater deployment of CCS than in the 2∘C base case. We provide a sensitivity analysis by making favorable assumptions for CCS, nuclear and renewables. We also explore regional differences in the deployment of CCS. We find that US and Europe mostly rely on gas CCS, whereas China relies on coal CCS and India pursues both options. We also assess how these projections align with assessment of CO2 storage potential, and find that storage potential is larger than storage demand at both global and regional scales. Ultimately, we find that under stringent mitigation scenarios, the power sector relies on a mix of technological options, and the conditions that favor a particular mix of technologies differ by region.

Keywords: Carbon capture and storage; emission mitigation; energy-economic models (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1142/S2010007821500019

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