Cutting costs of catching carbon: Intertemporal effects under imperfect climate policy

Arbeitspapier

We use a two-period model to investigate intertemporal eff ects 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Memorandum ; No. 2010,19

Classification and Topics

• 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 ; Klimaveränderung ; Fossiler Energieträger ; Kohlenstoffsenke ; Regenerative Energie ; Kosten ; Klimaschutz ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hoel, Michael ; Jensen, Svenn
• Event: Veröffentlichung
• (who): University of Oslo, Department of Economics
• (where): Oslo
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/47353
• Last update: 10.03.2025, 11:42 AM CET