Economic Impact of Carbon Capture and Storage (CCS)

The reduction of emissions of greenhouse gases is agreed in November 2016 in the Paris international agreement (IEA Dec. 2016). The agreement is expected to create a transformative change in the energy sector to combat climate change. The recent report of 2018/24/PR by IPCC (the Intergovernmental Panel on Climate Change), worldwide nations perceived the importance of reduction of pre-industrial temperature levels to less than 1.5°C. The major greenhouse gases are carbon dioxide (CO2) which is produced mostly due to burning of fossil fuels.

Carbon Capture and Storage (CCS) was found as a quicker solution to combat the changes compared to other scenarios such as use of renewable energies. However, the effect of CCS on micro- and macro-economic factors are not well addressed and it has caused delay in some countries to implement this policy. This project is to discover impact of CCS on macro-economic factors such employment, GDP, export, imports, etc. It will be tried to find an economical trend, empirical or mathematical model as function of captured carbon dioxide. The target countries will be minimum two countries under so called developed and developing countries to obtain empirical data and more insight to the project. It is also attempted to obtain influence of Circular Economy (CE) on CCS and create a model as predictive tools for the fossil-fuel fired power plants. The focus of CE will be on a country that had already implemented CCS for power generation.