Authors
Christoph von Stechow, Jim Watson, Barbara Praetorius
Publication date
2011/5/31
Journal
Global Environmental Change
Volume
21
Issue
2
Pages
346-357
Publisher
Pergamon
Description
In this paper, we compare different policy incentives for overcoming investment uncertainties that are typical for low-carbon technologies prior to their commercialisation, some of which may be attributable to market failures. The paper focuses on the particular case of carbon capture and storage (CCS) technologies and conducts a qualitative multi-criteria analysis of different public policy support schemes for CCS demonstration to evaluate their suitability. The assessed schemes include mandatory CCS, emission performance standards and several different financial incentives (in addition to the European Union Emission Trading Scheme). Based on the available literature and on experience in the UK and Germany with promotion instruments for low-carbon technologies, the results of our analysis suggest that two alternative schemes, a CCS bonus incentive or a CO2 price guarantee, perform best in comparison …
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