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- W2096522344 abstract "We study the eects of a carbon emission tax on the interaction between carbon capture and storage (CCS) and enhanced oil recovery (EOR). We consider a CO2 market where CCS rms sell their CO 2 to EOR rms that use this CO 2 as an input to their production process. In this economic environment, we nd that the eectiveness of a carbon tax may be hampered. A carbon tax shifts out the supply curve of CO2 leading to a decline in the market price of CO2. With lower input price, oil rms are indirectly subsidized and oil production and emissions increase. Nonetheless, we show the total emissions from both CCS and EOR sectors are always decreasing in the carbon tax. Because the structure of the CO2 market depends on regional characteristics, we also examine how the distribution of market power across these two sectors inuence CO2 abatement, energy output, and total emissions. Contrary to the standard result in environmental economics, market power can lead to an increase in pollution. Our ndings demonstrate that a carbon tax will have dierential impacts across regions and that policy needs to be adjusted to control for the idiosyncrasies of each local market situation." @default.
- W2096522344 created "2016-06-24" @default.
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- W2096522344 date "2014-01-01" @default.
- W2096522344 modified "2023-10-11" @default.
- W2096522344 title "A Two Sided Carbon Story: Carbon Capture and Storage and Enhanced Oil Recovery" @default.
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