IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp820.html
   My bibliography  Save this paper

Greenhouse Gas Mitigation in a Carbon Constrained World: The Role of Carbon Capture and Storage

Author

Listed:
  • Barbara Praetorius
  • Katja Schumacher

Abstract

In a carbon constrained world, at least four classes of greenhouse gas mitigation options are available: Energy efficiency, fuel switching, introduction of carbon dioxide capture and storage along with renewable generating technologies, and reductions in emissions of non-CO2 greenhouse gases. The role of energy technologies is considered crucial in climate change mitigation. In particular, carbon capture and storage (CCS) promises to allow for low-emissions fossil-fuel based power generation. The technology is under development; a number of technological, economic, environmental and safety issues remain to be solved. With regard to its sustainability impact, CCS raises a number of questions: On the one hand, CCS may prolong the prevailing coal-to-electricity regime and countervail efforts in other mitigation categories. On the other hand, given the indisputable need to continue using fossil fuels for some time, it may serve as a bridging technology towards a sustainable energy future. In this paper, we discuss the relevant issues for the case of Germany. We provide a survey of the current state of the art of CCS and activities, and perform an energy-environment-economic analysis using a general equilibrium model for Germany. The model analyzes the impact of introducing carbon constraints with respect to the deployment of CCS, to the resulting greenhouse gas emissions, to the energy and technology mix and with respect to interaction of different mitigation efforts. The results show the relative importance of the components in mitigating greenhouse gas emissions in Germany. For example, under the assumption of a CO2 policy, both energy efficiency and CCS will contribute to climate gas mitigation. A given climate target can be achieved at lower marginal costs when the option of CCS is included. We conclude that, given an appropriate legal and policy framework, CCS, energy efficiency and some other mitigation efforts are complementary measures and should form part of a broad mix of measures required for a successful CO2 mitigation strategy.

Suggested Citation

  • Barbara Praetorius & Katja Schumacher, 2008. "Greenhouse Gas Mitigation in a Carbon Constrained World: The Role of Carbon Capture and Storage," Discussion Papers of DIW Berlin 820, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp820
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.89042.de/dp820.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Corinna Fischer & Barbara Praetorius, 2008. "Carbon capture and storage: settling the German coal vs. climate change dispute?," International Journal of Environmental Technology and Management, Inderscience Enterprises Ltd, vol. 9(2/3), pages 176-203.
    2. Unruh, Gregory C. & Carrillo-Hermosilla, Javier, 2006. "Globalizing carbon lock-in," Energy Policy, Elsevier, vol. 34(10), pages 1185-1197, July.
    3. Unruh, Gregory C., 2002. "Escaping carbon lock-in," Energy Policy, Elsevier, vol. 30(4), pages 317-325, March.
    4. Sands, Ronald D., 2004. "Dynamics of carbon abatement in the Second Generation Model," Energy Economics, Elsevier, vol. 26(4), pages 721-738, July.
    5. Dietrich, Lars & Bode, Sven, 2005. "CO2-Abscheidung und Ablagerung (CAA): Ordnungsrechtliche Aspekte und okonomische Implikationen im Rahmen des EU - Emissionshandels," Discussion Paper Series 26203, Hamburg Institute of International Economics.
    6. Rubin, Edward S. & Yeh, Sonia & Antes, Matt & Berkenpas, Michael & Davison, John, 2007. "Use of experience curves to estimate the future cost of power plants with CO2 capture," Institute of Transportation Studies, Working Paper Series qt46x6h0n0, Institute of Transportation Studies, UC Davis.
    7. Martinsen, Dag & Linssen, Jochen & Markewitz, Peter & Vogele, Stefan, 2007. "CCS: A future CO2 mitigation option for Germany?--A bottom-up approach," Energy Policy, Elsevier, vol. 35(4), pages 2110-2120, April.
    8. Dietrich, Lars & Bode, Sven, 2005. "CO2-Abscheidung und Ablagerung (CAA): Ordnungsrechtliche Aspekte und ökonomische Implikationen im Rahmen des EU-Emissionshandels," HWWA Discussion Papers 327, Hamburg Institute of International Economics (HWWA).
    9. Schumacher, Katja & Sands, Ronald D., 2006. "Innovative energy technologies and climate policy in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3929-3941, December.
    10. Unruh, Gregory C., 2000. "Understanding carbon lock-in," Energy Policy, Elsevier, vol. 28(12), pages 817-830, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sébastien Chailleux, 2020. "Making the subsurface political: How enhanced oil recovery techniques reshaped the energy transition," Environment and Planning C, , vol. 38(4), pages 733-750, June.
    2. Yang, Lin & Xu, Mao & Fan, Jingli & Liang, Xi & Zhang, Xian & Lv, Haodong & Wang, Dong, 2021. "Financing coal-fired power plant to demonstrate CCS (carbon capture and storage) through an innovative policy incentive in China," Energy Policy, Elsevier, vol. 158(C).
    3. Bowen, Frances, 2011. "Carbon capture and storage as a corporate technology strategy challenge," Energy Policy, Elsevier, vol. 39(5), pages 2256-2264, May.
    4. Guanrun Chu & Lin Wang & Weizao Liu & Guoquan Zhang & Dongmei Luo & Liming Wang & Bin Liang & Chun Li, 2019. "Indirect mineral carbonation of chlorinated tailing derived from Ti‐bearing blast‐furnace slag coupled with simultaneous dechlorination and recovery of multiple value‐added products," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 9(1), pages 52-66, February.
    5. Lorraine Whitmarsh & Dimitrios Xenias & Christopher R. Jones, 2019. "Framing effects on public support for carbon capture and storage," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-10, December.
    6. Kemp-Benedict, Eric, 2013. "Resource Return on Investment under Markup Pricing," MPRA Paper 49154, University Library of Munich, Germany.
    7. Seddighi, Sadegh & Clough, Peter T. & Anthony, Edward J. & Hughes, Robin W. & Lu, Ping, 2018. "Scale-up challenges and opportunities for carbon capture by oxy-fuel circulating fluidized beds," Applied Energy, Elsevier, vol. 232(C), pages 527-542.
    8. Rübbelke, Dirk & Vögele, Stefan, 2013. "Effects of carbon dioxide capture and storage in Germany on European electricity exchange and welfare," Energy Policy, Elsevier, vol. 59(C), pages 582-588.
    9. Alami, Abdul Hai & Hawili, Abdullah Abu & Hassan, Rita & Al-Hemyari, Mohammed & Aokal, Kamilia, 2019. "Experimental study of carbon dioxide as working fluid in a closed-loop compressed gas energy storage system," Renewable Energy, Elsevier, vol. 134(C), pages 603-611.
    10. Arvesen, Anders & Bright, Ryan M. & Hertwich, Edgar G., 2011. "Considering only first-order effects? How simplifications lead to unrealistic technology optimism in climate change mitigation," Energy Policy, Elsevier, vol. 39(11), pages 7448-7454.
    11. Nehil Shreyash & Muskan Sonker & Sushant Bajpai & Saurabh Kr Tiwary & Mohd Ashhar Khan & Subham Raj & Tushar Sharma & Susham Biswas, 2021. "The Review of Carbon Capture-Storage Technologies and Developing Fuel Cells for Enhancing Utilization," Energies, MDPI, vol. 14(16), pages 1-34, August.
    12. Barbara Koelbl & Machteld Broek & André Faaij & Detlef Vuuren, 2014. "Uncertainty in Carbon Capture and Storage (CCS) deployment projections: a cross-model comparison exercise," Climatic Change, Springer, vol. 123(3), pages 461-476, April.
    13. Setiawan, Andri D. & Cuppen, Eefje, 2013. "Stakeholder perspectives on carbon capture and storage in Indonesia," Energy Policy, Elsevier, vol. 61(C), pages 1188-1199.
    14. Wang, Bing & Kocaoglu, Dundar F. & Daim, Tugrul U. & Yang, Jiting, 2010. "A decision model for energy resource selection in China," Energy Policy, Elsevier, vol. 38(11), pages 7130-7141, November.
    15. Soren Lindner & Sonja Peterson & Wilhelm Windhorst, 2010. "An economic and environmental assessment of carbon capture and storage (CCS) power plants: a case study for the City of Kiel," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(8), pages 1069-1088.
    16. Vögele, Stefan & Rübbelke, Dirk, 2013. "Decisions on investments in photovoltaics and carbon capture and storage: A comparison between two different greenhouse gas control strategies," Energy, Elsevier, vol. 62(C), pages 385-392.
    17. Varma, Rashmi & Sushil,, 2019. "Bridging the electricity demand and supply gap using dynamic modeling in the Indian context," Energy Policy, Elsevier, vol. 132(C), pages 515-535.
    18. Yuehong Lu & Zafar A. Khan & Manuel S. Alvarez-Alvarado & Yang Zhang & Zhijia Huang & Muhammad Imran, 2020. "A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources," Sustainability, MDPI, vol. 12(12), pages 1-31, June.
    19. Rogge, Karoline S. & Hoffmann, Volker H., 2010. "The impact of the EU ETS on the sectoral innovation system for power generation technologies - Findings for Germany," Energy Policy, Elsevier, vol. 38(12), pages 7639-7652, December.
    20. Chicco, Gianfranco & Stephenson, Paule M., 2012. "Effectiveness of setting cumulative carbon dioxide emissions reduction targets," Energy, Elsevier, vol. 42(1), pages 19-31.
    21. Vögele, Stefan & Rübbelke, Dirk & Mayer, Philip & Kuckshinrichs, Wilhelm, 2018. "Germany’s “No” to carbon capture and storage: Just a question of lacking acceptance?," Applied Energy, Elsevier, vol. 214(C), pages 205-218.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evar, Benjamin, 2011. "Conditional inevitability: Expert perceptions of carbon capture and storage uncertainties in the UK context," Energy Policy, Elsevier, vol. 39(6), pages 3414-3424, June.
    2. Vallentin, Daniel, 2007. "Inducing the international diffusion of carbon capture and storage technologies in the power sector," Wuppertal Papers 162, Wuppertal Institute for Climate, Environment and Energy.
    3. Floater, Graham & Rode, Philipp & Robert, Alexis & Kennedy, Chris & Hoornweg, Dan & Slavcheva, Roxana & Godfrey, Nick, 2014. "Cities and the New Climate Economy: the transformative role of global urban growth," LSE Research Online Documents on Economics 60775, London School of Economics and Political Science, LSE Library.
    4. Sen, Suphi & von Schickfus, Marie-Theres, 2020. "Climate policy, stranded assets, and investors’ expectations," Journal of Environmental Economics and Management, Elsevier, vol. 100(C).
    5. Foxon, Timothy J. & Pearson, Peter J.G. & Arapostathis, Stathis & Carlsson-Hyslop, Anna & Thornton, Judith, 2013. "Branching points for transition pathways: assessing responses of actors to challenges on pathways to a low carbon future," Energy Policy, Elsevier, vol. 52(C), pages 146-158.
    6. Zhao, Congyu & Dong, Kangyin & Jiang, Hong-Dian & Wang, Kun & Dong, Xiucheng, 2023. "How does energy poverty eradication realize the path to carbon unlocking? The case of China," Energy Economics, Elsevier, vol. 121(C).
    7. Fertel, Camille & Bahn, Olivier & Vaillancourt, Kathleen & Waaub, Jean-Philippe, 2013. "Canadian energy and climate policies: A SWOT analysis in search of federal/provincial coherence," Energy Policy, Elsevier, vol. 63(C), pages 1139-1150.
    8. Lohwasser, Richard & Madlener, Reinhard, 2009. "Impact of CCS on the Economics of Coal-Fired Power Plants: Why Investment Costs Do and Efficiency Doesn’t Matter," FCN Working Papers 7/2009, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    9. Simon Shackley & Michael Thompson, 2012. "Lost in the mix: will the technologies of carbon dioxide capture and storage provide us with a breathing space as we strive to make the transition from fossil fuels to renewables?," Climatic Change, Springer, vol. 110(1), pages 101-121, January.
    10. Nils Markusson, 2012. "Born Again: The Debate on Lock-in and Ccs," Energy & Environment, , vol. 23(2-3), pages 389-394, May.
    11. Zhao, Congyu & Dong, Kangyin & Lee, Chien-Chiang, 2024. "Carbon lock-in endgame: Can energy trilemma eradication contribute to decarbonization?," Energy, Elsevier, vol. 293(C).
    12. Foxon, Timothy J., 2011. "A coevolutionary framework for analysing a transition to a sustainable low carbon economy," Ecological Economics, Elsevier, vol. 70(12), pages 2258-2267.
    13. Nordensvärd, Johan & Urban, Frauke, 2015. "The stuttering energy transition in Germany: Wind energy policy and feed-in tariff lock-in," Energy Policy, Elsevier, vol. 82(C), pages 156-165.
    14. Schmidt, Robert C. & Marschinski, Robert, 2009. "A model of technological breakthrough in the renewable energy sector," Ecological Economics, Elsevier, vol. 69(2), pages 435-444, December.
    15. Wei Jin & ZhongXiang Zhang, 2015. "Levelling the Playing Field: On the Missing Role of Network Externality in Designing Renewable Energy Technology Deployment Policies," Working Papers 2015.76, Fondazione Eni Enrico Mattei.
    16. Wu, Qiyan & Zhang, Xiaoling & Shang, Zhengyong & Li, Zaijun, 2015. "Political-economy based institutional industry complex and sustainable development: The case of the salt-chemical industry in Huai’an, China," Energy Policy, Elsevier, vol. 87(C), pages 39-47.
    17. Holstenkamp, Lars, 2019. "What do we know about cooperative sustainable electrification in the global South? A synthesis of the literature and refined social-ecological systems framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 307-320.
    18. Steffen S. Bettin, 2020. "Electricity infrastructure and innovation in the next phase of energy transition—amendments to the technology innovation system framework," Review of Evolutionary Political Economy, Springer, vol. 1(3), pages 371-395, November.
    19. Zhao, Congyu & Wang, Jianda & Dong, Kangyin & Wang, Kun, 2023. "How does renewable energy encourage carbon unlocking? A global case for decarbonization," Resources Policy, Elsevier, vol. 83(C).
    20. Barry Ball & Bertram Ehmann & John Foster & Craig Froome & Ove Hoegh-Guldberg & Paul Meredith & Lynette Molyneaux & Tapan Saha & Liam Wagner, 2011. "Delivering a Competitive Australian Power System. Part 1: Australia’s Global Position," Energy Economics and Management Group Working Papers 13, School of Economics, University of Queensland, Australia.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp820. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.