eprintid: 16443 rev_number: 10 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/01/64/43 datestamp: 2015-03-16 14:25:42 lastmod: 2021-04-02 15:49:14 status_changed: 2015-03-16 14:25:42 type: monograph metadata_visibility: show creators_name: Amigues, Jean-Pierre creators_name: Lafforgue, Gilles creators_name: Moreaux, Michel creators_idrefppn: 083881522 creators_idrefppn: 06993164X creators_idrefppn: 031616623 title: Optimal Timing of Carbon Capture Policies Under Alternative CCS Cost Functions ispublished: pub subjects: subjects_ECO abstract: We determine the optimal exploitation time-paths of three types of perfect substitute energy resources: The first one is depletable and carbon-emitting (dirty coal), the second one is also depletable but carbon-free thanks to a carbon capture and storage (CCS) process (clean coal) and the last one is renewable and clean (solar energy). We assume that the atmospheric carbon stock cannot exceed some given ceiling. These optimal paths are considered along with alternative structures of the CCS cost function depending on whether the marginal sequestration cost depends on the flow of clean coal consumption or on its cumulated stock. In the later case, the marginal cost function can be either increasing in the stock thus revealing a scarcity effect on the storage capacity of carbon emissions, or decreasing in order to take into account some learning process. We show among others the following results: Under a stockdependent CCS cost function, the clean coal exploitation must begin at the earliest when the carbon cap is reached while it must begin before under a flow-dependent cost function. Under stock-dependent cost function with a dominant learning effect, the energy price path can evolve non-monotonically over time. When the solar cost is low enough, this last case can give rise to an unusual sequence of energy consumption along which the solar energy consumption is interrupted for some time and replaced by the clean coal exploitation. Last, the scarcity effect implies a carbon tax trajectory which is also unusual in this kind of ceiling models, its increasing part been extended for some time during the period at the ceiling. date: 2012-04 date_type: published publisher: LERNA Working Paper official_url: http://tse-fr.eu/pub/25948 faculty: tse divisions: tse keywords: Carbon capture and storage keywords: Energy substitution keywords: Learning effect keywords: Scarcity effect keywords: Carbon stabilization cap has_fulltext: TRUE subjectsJEL: JEL_Q32 subjectsJEL: JEL_Q42 subjectsJEL: JEL_Q54 subjectsJEL: JEL_Q55 subjectsJEL: JEL_Q58 view_date_year: 2012 full_text_status: public monograph_type: working_paper series: LERNA Working Paper volume: 12.11.368 book_title: LERNA Working Paper oai_identifier: oai:tse-fr.eu:25948 harvester_local_overwrite: oai_set harvester_local_overwrite: faculty harvester_local_overwrite: site harvester_local_overwrite: creators_idrefppn oai_lastmod: 2014-11-08T09:53:27Z oai_set: tse oai_set: ut1c site: ut1 citation: Amigues, Jean-Pierre , Lafforgue, Gilles and Moreaux, Michel (2012) Optimal Timing of Carbon Capture Policies Under Alternative CCS Cost Functions. LERNA Working Paper, n. 12.11.368 document_url: https://publications.ut-capitole.fr/id/eprint/16443/1/12.11.368.pdf