Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

An Issue of Permanence: Assessing the Effectiveness of Temporary Carbon Storage

An Issue of Permanence: Assessing the Effectiveness of Temporary Carbon Storage In this paper, we present a method to quantify the effectiveness of carbon mitigation options taking into account the `permanence' of the emissions reduction. While the issue of permanence is most commonly associated with a `leaky' carbon sequestration reservoir, we argue that this is an issue that applies to just about all carbon mitigation options. The appropriate formulation of this problem is to ask `what is the value of temporary storage?' Valuing temporary storage can be represented as a familiar economic problem, with explicitly stated assumptions about carbon prices and the discount rate. To illustrate the methodology, we calculate the sequestration effectiveness for injecting CO2 at various depths in the ocean. Analysis is performed for three limiting carbon price assumptions: constant carbon prices (assumes constant marginal damages), carbon prices rise at the discount rate (assumes efficient allocation of a cumulative emissions cap without a backstop technology), and carbon prices first rise at the discount rate but become constant after a given time (assumes introduction of a backstop technology). Our results show that the value of relatively deep ocean carbon sequestration can be nearly equivalent to permanent sequestration if marginal damages (i.e., carbon prices) remain constant or if there is a backstop technology that caps the abatement cost in the not too distant future. On the other hand, if climate damages are such as to require a fixed cumulative emissions limit and there is no backstop, then a storage option with even very slow leakage has limited value relative to a permanent storage option. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Climatic Change Springer Journals

An Issue of Permanence: Assessing the Effectiveness of Temporary Carbon Storage

Herzog, Howard; Caldeira, Ken; Reilly, John
Climatic Change , Volume 59 (3) – Oct 10, 2004
Download PDF
18 pages

Loading next page...
 
/lp/springer-journals/an-issue-of-permanence-assessing-the-effectiveness-of-temporary-carbon-guiH1D8VpJ

References (57)

Publisher
Springer Journals
Copyright
Copyright © 2003 by Kluwer Academic Publishers
Subject
Earth Sciences; Atmospheric Sciences; Climate Change/Climate Change Impacts
ISSN
0165-0009
eISSN
1573-1480
DOI
10.1023/A:1024801618900
Publisher site
See Article on Publisher Site

Abstract

In this paper, we present a method to quantify the effectiveness of carbon mitigation options taking into account the `permanence' of the emissions reduction. While the issue of permanence is most commonly associated with a `leaky' carbon sequestration reservoir, we argue that this is an issue that applies to just about all carbon mitigation options. The appropriate formulation of this problem is to ask `what is the value of temporary storage?' Valuing temporary storage can be represented as a familiar economic problem, with explicitly stated assumptions about carbon prices and the discount rate. To illustrate the methodology, we calculate the sequestration effectiveness for injecting CO2 at various depths in the ocean. Analysis is performed for three limiting carbon price assumptions: constant carbon prices (assumes constant marginal damages), carbon prices rise at the discount rate (assumes efficient allocation of a cumulative emissions cap without a backstop technology), and carbon prices first rise at the discount rate but become constant after a given time (assumes introduction of a backstop technology). Our results show that the value of relatively deep ocean carbon sequestration can be nearly equivalent to permanent sequestration if marginal damages (i.e., carbon prices) remain constant or if there is a backstop technology that caps the abatement cost in the not too distant future. On the other hand, if climate damages are such as to require a fixed cumulative emissions limit and there is no backstop, then a storage option with even very slow leakage has limited value relative to a permanent storage option.

Journal

Climatic Change – Springer Journals

Published: Oct 10, 2004

There are no references for this article.