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Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1657:
Embedding CCS infrastructure into the European electricity system: A policy coordination problem

Nadine Heitmann, Christine Bertram and Daiju Narita

Abstract: Carbon dioxide capture and storage (CCS) has recently been receiving increasing recognition in policy debates. Various aspects of possible regulatory frameworks for its implementation are beginning to be discussed in Europe. One of the issues associated with the wide use of CCS is that it requires the establishment of a carbon dioxide (CO2) transport network, which could result in the spatial restructuring of power generation and transmission systems. This poses a significant coordination problem necessitating public planning and regulation. This paper reviews the recent literature on energy system modeling pertaining to the problem of installing CCS-related infrastructure throughout Europe and also discusses the policy issues that need to be addressed for a potential wide implementation of CCS in the next decades

Keywords: CCS (carbon dioxide capture and storage), the European Union, climate policy, energy system models, cost effectiveness; (follow links to similar papers)

JEL-Codes: Q41,; Q48,; Q52,; Q54; (follow links to similar papers)

39 pages, November 2010

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