Optimal Timing of CCS Policies under Decreasing Returns to Scale

Amigues, Jean-Pierre, Lafforgue, Gilles and Moreaux, Michel (2014) Optimal Timing of CCS Policies under Decreasing Returns to Scale. LERNA Working Paper, n. 14.11.412

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Official URL: http://tse-fr.eu/pub/28560

Abstract

Carbon capture and sequestration (CCS) can help to mitigate the climate change transition. Usually, in models where the atmospheric carbon stock is constrained by an institutional stabilization cap and under constant average CCS cost, the use of CCS must be delayed up to the time at which the constraint begins to be e@ective. In this paper, we show that, when abatement activity are submitted to decreasing returns to scale, abatement must start earlier, before the climate constraint becomes to bind, but they must also be stopped strictly before the climate constraints ceases to be active. Depending on the solar energy costs, either there is a return toward dirty energy or either a progressive rise of solar energy at the expense of abatement activities.

Item Type: Monograph (Working Paper)
Language: English
Date: May 2014
Uncontrolled Keywords: Energy resources, carbon stabilization cap, carbon capture and storage, decreasing returns to scale
JEL codes: Q32 - Exhaustible Resources and Economic Development
Q42 - Alternative Energy Sources
Q54 - Climate; Natural Disasters
Q58 - Government Policy
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 16 Mar 2015 14:50
Last Modified: 07 Mar 2018 13:23
OAI ID: oai:tse-fr.eu:28560
URI: http://publications.ut-capitole.fr/id/eprint/16597

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