Economic Benefits of a Technology Strategy and R&D Program in Carbon Sequestration

Abstract

This chapter highlights the ongoing effort by the U.S. Department of Energy's (DOE's) Carbon Sequestration Program to assess the economic benefits that may result from investments in carbon sequestration technology development. Earlier versions of this analysis were presented at GHGT-V and the First National Conference on Carbon Sequestration. The objective of DOE's sequestration technology development is to create lower cost options for greenhouse gas (GHG) emissions reduction through voluntary challenges and market-based incentives. The benefits derive from cost alternatives for GHG emissions abatement compared to existing alternatives. The analysis is forward-looking and relies on assumed future scenarios regarding GHG emissions. As such, there exists an important feedback between the benefits analysis and DOE's Sequestration R&D portfolio. The Carbon Sequestration Benefits (CarBen) model combines results from a general equilibrium model with non-energy data and extrapolations through 2040 to provide a robust, transparent representation of the United States GHG emissions issue. The model estimates needed reductions in GHG emissions by calculating the difference between emissions under reference case and lower GHG emissions scenarios. The reduced emissions scenario is consistent with the Administration's Global Climate Change Initiative (GCCI), an 18% reduction in the GHG intensity by 2012 with steady progress toward stabilization thereafter.