Monopolistic sequestration of European carbon emissions
Mitigating climate change by carbon capture and storage (CCS) will require vast infrastructure investments. These investments include pipeline networks for transporting carbon dioxide (CO2) from industrial sites ('sources') to the storage sites ('sinks'). This paper considers the...
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| Format: | Working paper |
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University of Oxford
2012
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| _version_ | 1797094539861688320 |
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| author | Jaakkola, N |
| author_facet | Jaakkola, N |
| author_sort | Jaakkola, N |
| collection | OXFORD |
| description | Mitigating climate change by carbon capture and storage (CCS) will require vast infrastructure investments. These investments include pipeline networks for transporting carbon dioxide (CO2) from industrial sites ('sources') to the storage sites ('sinks'). This paper considers the decentralised formation of trunk-line networks when geological storage space is exhaustible and demand is increasing. Monopolistic control of an exhaustible resource may lead to overinvestment and/or excessively early investment, as these allow the monopolist to increase her market power. The model is applied to CCS pipeline network formation in northwestern Europe. The features identied above are found to play a minor role. Should storage capacity be effectively inexhaustible, underinvestment dueto the inability of the monopolist to capture the entire social surplus is likely to have substantial welfare impacts. Multilateral bargaining to coordinate international CCS policies is particularly important if storage capacity is plentiful. |
| first_indexed | 2024-03-07T04:15:25Z |
| format | Working paper |
| id | oxford-uuid:c93e6586-3a81-4e36-b1f1-85d739aa94c0 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T04:15:25Z |
| publishDate | 2012 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:c93e6586-3a81-4e36-b1f1-85d739aa94c02022-03-27T06:57:46ZMonopolistic sequestration of European carbon emissionsWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:c93e6586-3a81-4e36-b1f1-85d739aa94c0Symplectic ElementsBulk import via SwordUniversity of Oxford2012Jaakkola, NMitigating climate change by carbon capture and storage (CCS) will require vast infrastructure investments. These investments include pipeline networks for transporting carbon dioxide (CO2) from industrial sites ('sources') to the storage sites ('sinks'). This paper considers the decentralised formation of trunk-line networks when geological storage space is exhaustible and demand is increasing. Monopolistic control of an exhaustible resource may lead to overinvestment and/or excessively early investment, as these allow the monopolist to increase her market power. The model is applied to CCS pipeline network formation in northwestern Europe. The features identied above are found to play a minor role. Should storage capacity be effectively inexhaustible, underinvestment dueto the inability of the monopolist to capture the entire social surplus is likely to have substantial welfare impacts. Multilateral bargaining to coordinate international CCS policies is particularly important if storage capacity is plentiful. |
| spellingShingle | Jaakkola, N Monopolistic sequestration of European carbon emissions |
| title | Monopolistic sequestration of European carbon emissions |
| title_full | Monopolistic sequestration of European carbon emissions |
| title_fullStr | Monopolistic sequestration of European carbon emissions |
| title_full_unstemmed | Monopolistic sequestration of European carbon emissions |
| title_short | Monopolistic sequestration of European carbon emissions |
| title_sort | monopolistic sequestration of european carbon emissions |
| work_keys_str_mv | AT jaakkolan monopolisticsequestrationofeuropeancarbonemissions |