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The political economy of carbon capture and storage: An analysis of two demonstration projects

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  • Kern, Florian
  • Gaede, James
  • Meadowcroft, James
  • Watson, Jim

Abstract

Carbon Capture and Storage (CCS) technology is considered key to mitigating climate change by international institutions and governments around the world. The technology is considered advantageous because it may enable the continued utilization of fossil fuels while curbing carbon emissions. However, development of the technology remains slow on the ground. It is generally argued that large-scale, integrated demonstration projects are needed as a next step toward commercialization. Despite government support in several countries, few projects exist so far worldwide. This paper asks why it is so difficult to get demonstration projects off the ground. The argument is that it is not only project-specific factors that determine the feasibility of demonstration, but given the need for government support, a variety of political economy factors influence decision-making processes by policy makers and companies. The paper introduces an analytical framework developed on the basis of the political economy literature that considers six sets of factors that influence outcomes. It discusses two specific projects, Longannet in the UK and Quest in Canada, and explains why one failed and the other one is under construction. The analysis shows that although climate change has been a more important policy concern in the UK compared to Canada, the specific political economy situation of fossil fuel rich provinces like Alberta has led to the Quest project going forward.

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  • Kern, Florian & Gaede, James & Meadowcroft, James & Watson, Jim, 2016. "The political economy of carbon capture and storage: An analysis of two demonstration projects," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 250-260.
    • Handle: RePEc:eee:tefoso:v:102:y:2016:i:c:p:250-260
    DOI: 10.1016/j.techfore.2015.09.010
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    3. Jingjing Xie & Yujiao Xian & Guowei Jia, 2023. "An investigation into the public acceptance in China of carbon capture and storage (CCS) technology," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 28(5), pages 1-22, June.
    4. Bossink, Bart A.G., 2017. "Demonstrating sustainable energy: A review based model of sustainable energy demonstration projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1349-1362.
    5. Ko, Yu-Chia & Zigan, Krystin & Liu, Yu-Lun, 2021. "Carbon capture and storage in South Africa: A technological innovation system with a political economy focus," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    6. Juan David González-Ruiz & Sergio Botero-Botero & Eduardo Duque-Grisales, 2018. "Financial Eco-Innovation as a Mechanism for Fostering the Development of Sustainable Infrastructure Systems," Sustainability, MDPI, vol. 10(12), pages 1-19, November.
    7. Ewa Knapik & Katarzyna Chruszcz-Lipska, 2020. "Chemistry of Reservoir Fluids in the Aspect of CO 2 Injection for Selected Oil Reservoirs in Poland," Energies, MDPI, vol. 13(23), pages 1-19, December.
    8. Nelson, Sarah & Allwood, Julian M., 2021. "The technological and social timelines of climate mitigation: Lessons from 12 past transitions," Energy Policy, Elsevier, vol. 152(C).
    9. Lu, Zhou & Mahalik, Mantu Kumar & Mahalik, Hrushikesh & Zhao, Rui, 2022. "The moderating effects of democracy and technology adoption on the relationship between trade liberalisation and carbon emissions," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    10. Shin, Jungwoo & Lee, Chul-Yong & Kim, Hongbum, 2016. "Technology and demand forecasting for carbon capture and storage technology in South Korea," Energy Policy, Elsevier, vol. 98(C), pages 1-11.
    11. Sandrine Mathy & P. Menanteau, 2020. "Mitigation strategies to enhance the ambition of the nationally determined contributions : an analysis of 4 European countries with the decarbonization wedges methodology," Post-Print hal-03190845, HAL.
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