dc.contributor.author Durmaz, Tunç dc.contributor.author Schroyen, Fred dc.date.accessioned 2014-02-05T13:02:12Z dc.date.available 2014-02-05T13:02:12Z dc.date.issued 2013-08 dc.identifier.issn 0804-6824 dc.identifier.uri http://hdl.handle.net/11250/163450 dc.description.abstract Carbon capture and storage (CCS) is considered a critical technology needed to no_NO curb CO2 emissions and is envisioned by the International Energy Agency (IEA) as an integral part of least-cost greenhouse gas mitigation policy. In this paper, we assess the extent to which CCS and R&D in CCS technology are indeed part of a socially e cient solution to the problem of climate change. For this purpose, we extend the intertemporal model of climate and directed technical change developed by Acemoglu et al. (2012, American Economic Review, 102(1): 131{66) to include a sector responsible for CCS. Surprisingly, even for an optimistic cost estimate available for CCS ($60/ton of CO2 avoided), we nd that it is not optimal to deploy CCS or devote resources to R&D in CCS technology either in the near or distant future. Indeed, it is only when the marginal cost of CCS is less than$12/ton that a scenario with an active CCS sector (including R&D) becomes optimal, though not in the near future. dc.language.iso eng no_NO dc.publisher Norwegian School of Economics. Department of Economics no_NO dc.relation.ispartofseries Discussion Papers;14/2013 dc.title Evaluating carbon capture and storage in a climate model with directed technical change no_NO dc.type Working paper no_NO dc.subject.nsi VDP::Social science: 200::Economics: 210::Economics: 212 no_NO
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