International Emission Trading and the Cost of Greenhouse Gas Emissions Mitigation and Sequestration
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.Get Access
The deployment of carbon capture and sequestration (CC&S) technologies is greatly affected by the marginal cost of controlling carbon emissions (also the value of carbon, when emissions permits are traded). Both the severity and timing of emissions limitations and the degree to which emissions limitation obligations can be traded will affect the value of carbon and thereby the timing and magnitude of CC&S technology deployment. Emissions limits that are more stringent in the near term imply higher near-term carbon values and therefore encourage the local development and deployment of CC&S technologies.Trade in emissions obligations lowers the cost of meeting any regional or global emissions limit and so affects the rate of penetration of CC&S technologies. Trade lowers the marginal value of carbon and CC&S penetration in high cost regions and raises the marginal value of carbon and CC&S penetration in low cost regions. The net impact on the world CC&Stechnologies depends on whether their increased use in low-cost regions exceeds the reduced use in high-cost regions.In the long term, CC&S technologies must not only remove carbon but permanently sequester it. If reservoirs are not permanent, then the emissions and costs of control are merely displaced into the future. The paper presents quantitative estimates for the impacts of trade in emissions limitation obligations on the timing, magnitude, and geographic distribution of CC&S technologies and the marginal and total costs of carbon control.
- International Emission Trading and the Cost of Greenhouse Gas Emissions Mitigation and Sequestration
Volume 64, Issue 3 , pp 257-287
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- Industry Sectors
- Author Affiliations
- 1. Battelle/Pacific Northwest National Laboratory, P.O. Box 999, Mail Stop K6-05, Richland, WA, 99352, U.S.A.
- 2. Tahoe-Baikal Institute, P.O. Box 13587, South Lake Tahoe, CA, 96151, U.S.A.
- 3. Margaree Consultants Inc., 145 King Street West, Suite 1000, Toronto, Ontario, M5H 1J8, Canada