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dc.contributor.authorNarita, Daijuen_US
dc.date.accessioned2009-04-24en_US
dc.date.accessioned2009-10-18T16:26:42Z-
dc.date.available2009-10-18T16:26:42Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/28336-
dc.description.abstractCCS (carbon dioxide capture and storage) is an issue which has received increasing attention in the debate on climate change over the last several years because of its relative technical simplicity and very large potential in reducing carbon dioxide emissions. The absence of secondary benefits and uncertainties associated with this approach, however, would require analysts to conduct fine cost-benefit comparisons vis-à-vis other mitigation options. The paper is to provide a perspective on future cost-benefit discussions of CCS by highlighting the optimality of CCS use viewed as a non-renewable resource with a limited capacity. Scarcity of CCS (storage) capacity should involve a shadow price which could raise CCS's effective price - this is a fair assumption given the technological assessments of CCS so far, but no economic study has explicitly investigated this characteristic before. By using a simple analytical dynamic optimization model, we examine the optimal paths of CCS use, CCS's real price inclusive of the shadow price, and their difference from the operational price. A particular implication of the model is that if all else is equal, the shadow price of CCS could make the technology relatively less attractive than renewable energy due to CCS's reliance on scarce reservoirs and the resultant shadow value. This serves as a justification for giving differentiated incentives to different CO2 reduction options: more precisely, more encouragement should be given to renewable energy in comparison to CCS.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesKiel working paper 1508en_US
dc.subject.jelQ3en_US
dc.subject.jelQ4en_US
dc.subject.jelQ54en_US
dc.subject.ddc330en_US
dc.subject.keywordCarbon dioxide capture and storage (CCS)en_US
dc.subject.keywordclimate changeen_US
dc.subject.keywordenergyen_US
dc.subject.keyworddynamic optimizationen_US
dc.subject.stwKohlenstoffsenkeen_US
dc.subject.stwKlimaschutzen_US
dc.subject.stwKosten-Nutzen-Analyseen_US
dc.subject.stwErschöpfbare Ressourcenen_US
dc.subject.stwDynamische Optimierungen_US
dc.subject.stwSchattenpreisen_US
dc.subject.stwEnergieökonomiken_US
dc.subject.stwTheorieen_US
dc.titleEconomic optimality of CCS use: a resource-economic modelen_US
dc.typeWorking Paperen_US
dc.identifier.ppn598259155en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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Kieler Arbeitspapiere, IfW

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