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Distributional Impacts of Carbon Capture in the US Power Sector.

Authors :
Varela, Ana Varela
Shawhan, Daniel
Funke, Christoph
Domeshek, Maya
Robson, Sally
Witkin, Steven
Burtraw, Dallas
Ünel, Burçin
Source :
Journal of the Association of Environmental & Resource Economists; 2024 Supplement 1, Vol. 11, pS157-S197, 41p
Publication Year :
2024

Abstract

While some see carbon capture, utilization, and storage (CCUS) as crucial for cost-effective decarbonization, it faces opposition based on air pollution and equity concerns. To understand this cost–air pollution trade-off, we simulate the potential impacts of allowing CCUS deployment in the US power sector under plausible climate policies. We show that the existence of this trade-off critically depends on the underlying policy, which affects the type of generation CCUS could displace: under a policy that incentivizes coal generation, CCUS might improve health outcomes and reduce costs. When we disaggregate our results, we find that the air pollution (PM<subscript>2.5</subscript>) effects of allowing CCUS, positive or negative, are largest for Black and low-income populations. We show that allowing CCUS can yield energy-cost savings, particularly benefiting lower-income communities. Our sensitivity analyses highlight the effects of uncertainties on costs and benefits. Overall, this study contributes to our understanding of broader distributional consequences of allowing CCUS. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
23335955
Volume :
11
Database :
Complementary Index
Journal :
Journal of the Association of Environmental & Resource Economists
Publication Type :
Academic Journal
Accession number :
180625604
Full Text :
https://doi.org/10.1086/731794