IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v34y2011i3p285-305.html
   My bibliography  Save this article

Optimal Spatial Deployment of CO2 Capture and Storage Given a Price on Carbon

Author

Listed:
  • Michael J. Kuby

    (School of Geographical Sciences and Urban Planning, Arizona State University, Tempe, AZ, USA, mikekuby@asu.edu)

  • Jeffrey M. Bielicki

    (Center for Science, Technology, and Public Policy, Humphrey School, University of Minnesota, Minneapolis, MN, USA)

  • Richard S. Middleton

    (Los Alamos National Laboratory, Earth and Environmental Sciences, Los Alamos National Laboratory, Los Alamos, NM, USA)

Abstract

Carbon dioxide capture and storage (CCS) links together technologies that separate carbon dioxide (CO 2 ) from fixed point source emissions and transport it by pipeline to geologic reservoirs into which it is injected underground for long-term containment. Previously, models have been developed to minimize the cost of a CCS infrastructure network that captures a given amount of CO 2 . The CCS process can be costly, however, and large-scale implementation by industry will require government regulations and economic incentives. The incentives can price CO 2 emissions through a tax or a cap-and-trade system. This paper extends the earlier mixed-integer linear programming model to endogenously determine the optimal quantity of CO 2 to capture and optimize the various components of a CCS infrastructure network, given the price per tonne to emit CO 2 into the atmosphere. The spatial decision support system first generates a candidate pipeline network and then minimizes the total cost of capturing, transporting, storing, or emitting CO 2 . To illustrate how the new model based on CO 2 prices works, it is applied to a case study of CO 2 sources, reservoirs, and candidate pipeline links and diameters in California.

Suggested Citation

  • Michael J. Kuby & Jeffrey M. Bielicki & Richard S. Middleton, 2011. "Optimal Spatial Deployment of CO2 Capture and Storage Given a Price on Carbon," International Regional Science Review, , vol. 34(3), pages 285-305, July.
    • Handle: RePEc:sae:inrsre:v:34:y:2011:i:3:p:285-305
    DOI: 10.1177/0160017610397191
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0160017610397191
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0160017610397191?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. T. L. Magnanti & R. T. Wong, 1984. "Network Design and Transportation Planning: Models and Algorithms," Transportation Science, INFORMS, vol. 18(1), pages 1-55, February.
    2. Stavins, Robert, 2007. "A U.S. Cap-and-Trade System to Address Global Climate Change," Working Paper Series rwp07-052, Harvard University, John F. Kennedy School of Government.
    3. Riahi, Keywan & Rubin, Edward S. & Schrattenholzer, Leo, 2004. "Prospects for carbon capture and sequestration technologies assuming their technological learning," Energy, Elsevier, vol. 29(9), pages 1309-1318.
    4. Kuby, Michael & Neuman, Susan & Zhang, Chuntai & Cook, Peter & Dadi, Zhou & Friesz, Terry & Qingqi, Shi & Shenhuai, Gao & Watanatada, Thawat & Cao, Wei & Sun, Xufei & Xie, Zhijun, 1993. "A strategic investment planning model for China's coal and electricity delivery system," Energy, Elsevier, vol. 18(1), pages 1-24.
    5. P. S. Davis & T. L. Ray, 1969. "A branch‐bound algorithm for the capacitated facilities location problem," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 16(3), pages 331-344, September.
    6. Roberts, Marc J. & Spence, Michael, 1976. "Effluent charges and licenses under uncertainty," Journal of Public Economics, Elsevier, vol. 5(3-4), pages 193-208.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Massol, Olivier & Tchung-Ming, Stéphane & Banal-Estañol, Albert, 2018. "Capturing industrial CO2 emissions in Spain: Infrastructures, costs and break-even prices," Energy Policy, Elsevier, vol. 115(C), pages 545-560.
    2. Jeffrey M. Bielicki & Guillaume Calas & Richard S. Middleton & Minh Ha‐Duong, 2014. "National corridors for climate change mitigation: managing industrial CO 2 emissions in France," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 4(3), pages 262-277, June.
    3. Massol, Olivier & Tchung-Ming, Stéphane & Banal-Estañol, Albert, 2015. "Joining the CCS club! The economics of CO2 pipeline projects," European Journal of Operational Research, Elsevier, vol. 247(1), pages 259-275.
    4. Knoope, M.M.J. & Ramírez, A. & Faaij, A.P.C., 2015. "The influence of uncertainty in the development of a CO2 infrastructure network," Applied Energy, Elsevier, vol. 158(C), pages 332-347.
    5. Phillips, Benjamin R. & Middleton, Richard S., 2012. "SimWIND: A geospatial infrastructure model for optimizing wind power generation and transmission," Energy Policy, Elsevier, vol. 43(C), pages 291-302.
    6. Middleton, Richard S. & Eccles, Jordan K., 2013. "The complex future of CO2 capture and storage: Variable electricity generation and fossil fuel power," Applied Energy, Elsevier, vol. 108(C), pages 66-73.
    7. Sun, Liang & Chen, Wenying, 2017. "Development and application of a multi-stage CCUS source–sink matching model," Applied Energy, Elsevier, vol. 185(P2), pages 1424-1432.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stavins, Robert N., 2019. "The Future of U.S. Carbon-Pricing Policy: Normative Assessment and Positive Prognosis," Working Paper Series rwp19-017, Harvard University, John F. Kennedy School of Government.
    2. Claudia Kettner-Marx & Daniela Kletzan-Slamanig & Angela Köppl & Thomas Schinko & Andreas Türk, 2011. "ETCLIP – The Challenge of the European Carbon Market: Emission Trading, Carbon Leakage and Instruments to Stabilise the CO2 Price. Price Volatility in Carbon Markets: Why it Matters and How it Can be ," WIFO Working Papers 409, WIFO.
    3. Gilbert E. Metcalf, 2009. "Cost Containment in Climate Change Policy: Alternative Approaches to Mitigating Price Volatility," NBER Working Papers 15125, National Bureau of Economic Research, Inc.
    4. Higgins, Paul A.T., 2013. "Frameworks for pricing greenhouse gas emissions and the policy objectives they promote," Energy Policy, Elsevier, vol. 62(C), pages 1301-1308.
    5. Fankhauser, Samuel & Hepburn, Cameron, 2010. "Designing carbon markets. Part I: Carbon markets in time," Energy Policy, Elsevier, vol. 38(8), pages 4363-4370, August.
    6. Gutierrez, Genaro J. & Kouvelis, Panagiotis & Kurawarwala, Abbas A., 1996. "A robustness approach to uncapacitated network design problems," European Journal of Operational Research, Elsevier, vol. 94(2), pages 362-376, October.
    7. Hahn Robert, 2010. "Designing Smarter Regulation with Improved Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 1(1), pages 1-19, July.
    8. Shrestha, Ratna K., 2017. "Menus of price-quantity contracts for inducing the truth in environmental regulation," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 1-7.
    9. Vidar Christiansen & Stephen Smith, 2012. "Externality‐Correcting Taxes and Regulation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 358-383, June.
    10. Espínola-Arredondo, Ana & Muñoz-García, Félix, 2013. "When does environmental regulation facilitate entry-deterring practices," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 133-152.
    11. Lawrence H. Goulder, 2013. "Markets for Pollution Allowances: What Are the (New) Lessons?," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 87-102, Winter.
    12. Grüll, Georg & Taschini, Luca, 2011. "Cap-and-trade properties under different hybrid scheme designs," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 107-118, January.
    13. Unold, Wolfram & Requate, Till, 2001. "Pollution control by options trading," Economics Letters, Elsevier, vol. 73(3), pages 353-358, December.
    14. Sam Fankhauser & Cameron Hepburn, 2009. "Carbon markets in space and time," GRI Working Papers 3, Grantham Research Institute on Climate Change and the Environment.
    15. Xiang-Yu Wang & Bao-Jun Tang, 2018. "Review of comparative studies on market mechanisms for carbon emission reduction: a bibliometric analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 94(3), pages 1141-1162, December.
    16. Joseph E. Aldy & William A. Pizer, 2009. "Issues in Designing U.S. Climate Change Policy," The Energy Journal, , vol. 30(3), pages 179-210, July.
    17. Heijmans, Roweno J.R.K. & Engström, Max, 2024. "Time Horizons and Emissions Trading," Discussion Papers 2024/2, Norwegian School of Economics, Department of Business and Management Science.
    18. Stavins, Robert, 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," RFF Working Paper Series dp-01-53, Resources for the Future.
    19. Chao-Ning Liao, 2009. "Technology adoption decisions under a mixed regulatory system of tradable permits and air pollution fees for the control of Total Suspended Particulates in Taiwan," Journal of Regulatory Economics, Springer, vol. 35(2), pages 135-153, April.
    20. Lai, N.Y.G. & Yap, E.H. & Lee, C.W., 2011. "Viability of CCS: A broad-based assessment for Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3608-3616.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inrsre:v:34:y:2011:i:3:p:285-305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.