Cutting Costs of Catching Carbon. Intertemporal effects under imperfect climate policy
AbstractWe use a two-period model to investigate intertemporal effects of cost reductions in climate change mitigation technologies for the power sector. With imperfect climate policies, cost reductions related to carbon capture and storage (CCS) may be more desirable than comparable cost reductions related to renewable energy. The finding rests on the incentives fossil resource owners face. With regulations of emissions only in the future, cheaper renewables speed up extraction (the `green paradox'), whereas CCS cost reductions make fossil resources more attractive for future use and lead to postponement of extraction.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 639.
Date of creation: Dec 2010
Date of revision:
climate change; exhaustible resources; carbon capture and storage; renewable energy; green paradox;
Find related papers by JEL classification:
- Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-12-11 (Agricultural Economics)
- NEP-ALL-2010-12-11 (All new papers)
- NEP-ENE-2010-12-11 (Energy Economics)
- NEP-ENV-2010-12-11 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ayong Le Kama, Alain & Fodha, Mouez & Lafforgue, Gilles, 2009.
"Optimal Carbon Capture and Storage Policies,"
TSE Working Papers
09-095, Toulouse School of Economics (TSE).
- Alain Ayong Le Kama & Mouez Fodha & LAFFORGUE Gilles, 2009. "Optimal Carbon Capture and Storage policies," LERNA Working Papers 09.24.300, LERNA, University of Toulouse.
- Ayong Le Kama, Alain & Fodha, Mouez & Lafforgue, Gilles, 2011. "Optimal Carbon Capture and Storage Policies," LERNA Working Papers 11.13.347, LERNA, University of Toulouse.
- Corrado Di Maria & Sjak Smulders & Edwin van der Werf, 2008. "Absolute Abundance and Relative Scarcity: Announced Policy, Resource Extraction, and Carbon Emissions," Working Papers 2008.92, Fondazione Eni Enrico Mattei.
- Frederick Van der Ploeg & Cees A. Withagen, 2010.
"Is There Really a Green Paradox?,"
CESifo Working Paper Series
2963, CESifo Group Munich.
- Rick van der Ploeg & Cees Withagen, 2010. "Is There Really a Green Paradox?," OxCarre Working Papers 035, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Frederick van der Ploeg & Cees Withagen, 2010. "Is there really a Green Paradox?," Tinbergen Institute Discussion Papers 10-020/3, Tinbergen Institute, revised 27 Aug 2012.
- Rübbelke, Dirk & Vögele, Stefan, 2013.
"Effects of carbon dioxide capture and storage in Germany on European electricity exchange and welfare,"
Elsevier, vol. 59(C), pages 582-588.
- Dirk Rübbelke & Stefan Vögele, 2012. "Effects of Carbon Dioxide Capture and Storage in Germany on European Electricity Exchange and Welfare," Working Papers 2012-05, BC3.
- Grimaud, André & Rougé, Luc, 2012.
"Carbon Sequestration, Economic Policies and Growth,"
TSE Working Papers
12-349, Toulouse School of Economics (TSE), revised Aug 2013.
- Grimaud, André & Rouge, Luc, 2014. "Carbon sequestration, economic policies and growth," Resource and Energy Economics, Elsevier, vol. 36(2), pages 307-331.
- Grimaud, André & Rougé, Luc, 2012. "Carbon Sequestration, Economic Policies and Growth," IDEI Working Papers 751, Institut d'Économie Industrielle (IDEI), Toulouse, revised Aug 2013.
- repec:pdn:wpaper:51 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (J Bruusgaard).
If references are entirely missing, you can add them using this form.