IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01297599.html
   My bibliography  Save this paper

Incentives for early adoption of carbon capture technology: Further considerations from a European perspective

Author

Listed:
  • Albert Banal-Estañol

    (Université de Londres - Université de Londres)

  • Jeremy Eckhause

    (RAND Corp - RAND Corp)

  • Olivier Massol

    (IFPEN - IFP Energies Nouvelles - IFP Energies Nouvelles, IFP School - IFP Energies Nouvelles)

Abstract

This note details two comments on a recent policy proposal in Comello and Reichelstein (2014) aimed at favoring the early adoption of Carbon Capture (CC) technology in the next generation of thermal-based power plants to be installed in the United States. First, we examine the implications of a worst-case scenario in which no new CC is adopted internationally beyond what is in place in 2014. Second, we show the potential, under the original proposed subsidy, for the emergence of coordination failures capable of hampering the desired early CC deployment. We propose and evaluate modified schedules of tax-credits sufficient to overcome these concerns. These additions strengthen the argument in the original article: namely, though higher incentive levels are necessary, our findings confirm that the cost of the proposed policy is not out of reach.

Suggested Citation

  • Albert Banal-Estañol & Jeremy Eckhause & Olivier Massol, 2016. "Incentives for early adoption of carbon capture technology: Further considerations from a European perspective," Post-Print hal-01297599, HAL.
  • Handle: RePEc:hal:journl:hal-01297599
    DOI: 10.1016/j.enpol.2015.12.006
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01297599
    as

    Download full text from publisher

    File URL: https://hal.archives-ouvertes.fr/hal-01297599/document
    Download Restriction: no

    References listed on IDEAS

    as
    1. Massol, Olivier & Tchung-Ming, Stéphane & Banal-Estañol, Albert, 2015. "Joining the CCS club! The economics of CO2 pipeline projects," European Journal of Operational Research, Elsevier, vol. 247(1), pages 259-275.
    2. Comello, Stephen & Reichelstein, Stefan, 2014. "Incentives for early adoption of carbon capture technology," Energy Policy, Elsevier, vol. 74(C), pages 579-588.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Coordination failure; Levelized cost; Learning effects; Tax incentives; Carbon Capture and Storage;

    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:hal:journl:hal-01297599. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.