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Carbon sequestration, economic policies and growth

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  • Grimaud, André
  • Rouge, Luc

Abstract

We present a model of endogenous growth in which the use of a non-renewable resource in production yields CO2 emissions whose accumulated stock negatively affects welfare. A CCS technology enables, via some effort, a partial reduction of these emissions.

Suggested Citation

  • Grimaud, André & Rouge, Luc, 2014. "Carbon sequestration, economic policies and growth," Resource and Energy Economics, Elsevier, vol. 36(2), pages 307-331.
    • Handle: RePEc:eee:resene:v:36:y:2014:i:2:p:307-331
    DOI: 10.1016/j.reseneeco.2013.12.004
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    3. Anna Creti & Alena Kotelnikova & Guy Meunier & Jean-Pierre Ponssard, 2018. "Correction to: Defining the Abatement Cost in Presence of Learning-by-Doing: Application to the Fuel Cell Electric Vehicle," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(3), pages 801-801, November.
    4. Dong Le & Fei Ren & Yiding Tang & Yuke Zhu, 2022. "The Effect of Environmental Policy Uncertainty on Enterprises’ Pollution Emissions: Evidence from Chinese Industrial Enterprise," IJERPH, MDPI, vol. 19(16), pages 1-22, August.
    5. Liu, Xinyu & Song, Min & Wang, Shuying & Xu, Xingwu & Li, Haolin, 2024. "On innovation infrastructure and industrial carbon emissions: Nonlinear correlation and effect mechanism," Applied Energy, Elsevier, vol. 375(C).
    6. Zhang, Kun & Wang, Qian & Liang, Qiao-Mei & Chen, Hao, 2016. "A bibliometric analysis of research on carbon tax from 1989 to 2014," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 297-310.
    7. Maciej Malaczewski, 2018. "Natural Resources As An Energy Source In A Simple Economic Growth Model," Bulletin of Economic Research, Wiley Blackwell, vol. 70(4), pages 362-380, October.
    8. Amigues, Jean-Pierre & Lafforgue, Gilles & Moreaux, Michel, 2016. "Optimal timing of carbon capture policies under learning-by-doing," Journal of Environmental Economics and Management, Elsevier, vol. 78(C), pages 20-37.
    9. Durmaz, Tunç, 2018. "The economics of CCS: Why have CCS technologies not had an international breakthrough?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 328-340.
    10. Durmaz, Tunç & Schroyen, Fred, 2013. "Evaluating Carbon Capture and Storage in a Climate Model with Directed Technical Change," Discussion Paper Series in Economics 14/2013, Norwegian School of Economics, Department of Economics.
    11. Gu, Zhenjing & Mousa, Saeed & Meng, Da & Elkady, Ahmed M. & Leong, Lin Woon, 2025. "Digitizing energy supply chains for enhanced resilience: Exploring the nexus between supply chain digitization, carbon neutrality, and natural resource extraction," Energy Economics, Elsevier, vol. 142(C).
    12. Huo, Xiaolin & Jiang, Dayan & Qiu, Zhigang & Yang, Sijie, 2022. "The impacts of dual carbon goals on asset prices in China," Journal of Asian Economics, Elsevier, vol. 83(C).
    13. Guangming Rao & Bin Su & Jinlian Li & Yong Wang & Yanhua Zhou & Zhaolin Wang, 2019. "Carbon Sequestration Total Factor Productivity Growth and Decomposition: A Case of the Yangtze River Economic Belt of China," Sustainability, MDPI, vol. 11(23), pages 1-28, November.
    14. Ken Tabata, 2024. "Taxation of a Non-renewable Resource and Inequality in an R&D-based Growth Model," Discussion Paper Series 272, School of Economics, Kwansei Gakuin University.
    15. Tunç Durmaz & Fred Schroyen, 2020. "Evaluating Carbon Capture And Storage In A Climate Model With Endogenous Technical Change," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 1-47, February.
    16. Lucas Bretschger & Christos Karydas, 2018. "Optimum Growth and Carbon Policies with Lags in the Climate System," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(4), pages 781-806, August.
    17. Anton Bondarev & Alfred Greiner, 2022. "How ongoing structural change creates a double dividend: outdating of technologies and green growth," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(2), pages 125-160, May.
    18. Maciej Malaczewski, 2017. "Warunki przejścia gospodarki na odnawialne źródła energii," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 33-51.
    19. Charles F. Mason & Neil Wilmot, 2015. "Modeling Damages in Climate Policy Models: Temperature-Based or Carbon-Based?," CESifo Working Paper Series 5287, CESifo.

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    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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