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Carbon Capture and a Commercial Market for CO 2

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  • Thomas Sadler

Abstract

With increasing evidence that the earth is warming at a faster rate than previously expected, there is pressure to reduce carbon dioxide (CO 2 ) emissions on a large scale. Because carbon capture helps to internalize the CO 2 externality, economists have begun to evaluate its potential. Two possibilities exist: carbon capture and storage (CCS), where CO 2 is sequestered, usually underground; and the development of a commercial market, where CO 2 is used for transformation into calcium carbonate, biofuels, air conditioning, or other market options. This paper contrasts CCS with the development of a commercial market for CO 2 and finds that the commercial market holds many advantages: internalization of the pollution externality, addressing the innovation externality, and revenue generation. Depending on the development of the commercial market, revenue from the sale of CO 2 could partially or fully offset the cost of innovation in carbon capture technology. Copyright International Atlantic Economic Society 2013

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  • Thomas Sadler, 2013. "Carbon Capture and a Commercial Market for CO 2," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(2), pages 189-200, May.
    • Handle: RePEc:kap:iaecre:v:19:y:2013:i:2:p:189-200:10.1007/s11294-013-9401-8
    DOI: 10.1007/s11294-013-9401-8
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    Cited by:

    1. Veselovskaya, Janna V. & Parunin, Pavel D. & Netskina, Olga V. & Kibis, Lidiya S. & Lysikov, Anton I. & Okunev, Aleksey G., 2018. "Catalytic methanation of carbon dioxide captured from ambient air," Energy, Elsevier, vol. 159(C), pages 766-773.
    2. Annageldy Arazmuradov, 2016. "Economic prospect on carbon emissions in Commonwealth of Independent States," Economic Change and Restructuring, Springer, vol. 49(4), pages 395-427, November.

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    More about this item

    Keywords

    Carbon capture; Carbon policy; Commercial market for CO 2 ; Innovation; Q54; Q55; Q58;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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