Arbeitspapier

Cutting Costs of Catching Carbon. Intertemporal effects under imperfect climate policy

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We use a two-period model to investigate intertemporal effects of cost reductions in climate change mitigation technologies for the power sector. With imperfect climate policies, cost reductions related to carbon capture and storage (CCS) may be more desirable than comparable cost reductions related to renewable energy. The finding rests on the incentives fossil resource owners face. With regulations of emissions only in the future, cheaper renewables speed up extraction (the `green paradox'), whereas CCS cost reductions make fossil resources more attractive for future use and lead to postponement of extraction.

Language: Englisch

Bibliographic citation: Series: Discussion Papers ; No. 639

Classification: Wirtschaft
Nonrenewable Resources and Conservation: General
Alternative Energy Sources
Climate; Natural Disasters and Their Management; Global Warming

Subject: climate change
exhaustible resources
carbon capture and storage
renewable energy
green paradox

Event: Geistige Schöpfung

(who): Hoel, Michael
Jensen, Svenn

Event: Veröffentlichung

(who): Statistics Norway, Research Department

(where): Oslo

(when): 2010

Handle: http://hdl.handle.net/10419/192621

Last update: 10.03.2025, 11:41 AM CET

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Object type

Arbeitspapier

Associated

Hoel, Michael
Jensen, Svenn
Statistics Norway, Research Department

Time of origin

2010

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