Robust mitigation options will play significant role in achieving the target of limiting global change to below 1.5 °C above pre-industrial levels by 2100. To support cooperation for mitigation development, we establish a real options-based model to evaluate the rational decisions of exercising the abandon option for carbon capture and storage-enhanced oil recovery (CCS-EOR) projects under oil market and geological uncertainties. Three possible cooperative mechanisms (fixed carbon dioxide (CO2) price, oil-indexed CO2 price, and joint venture contracts) among CO2-EOR stakeholders are evaluated. The results show that the conflicts in profit maximization targets for different stakeholders in cooperative mitigation are to a great extent unable to be avoided. A joint venture business model is preferred in cooperative mitigation as it can effectively weaken such conflicts. And it is more reasonable to provide incentives to the downstream of the CO2-EOR chain than compensating the adoption cost of carbon capture technologies in the upstream. From a global perspective, the inefficient cooperation can be a main barrier that hinders the development of deep-cutting options. Global mitigation strategies should not only focus on promoting technology progress but also the design of innovative business models to balance the benefits among stakeholders. A joint venture business model is recommended in both the developed and developing countries for seizing the early mitigation opportunities.
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Round-ups are the summaries of handpicked papers around trending topics published every week. These would enable you to scan through a collection of papers and decide if the paper is relevant to you before actually investing time into reading it.
Coronavirus Research Articles published between Oct 11, 2021 to Oct 17, 2021
Oct 18, 2021
Articles Included: 3
Muhammad Ikbal and colleagues (2021) reported in ‘Visualisasi dan Analisa Data Penyebaran Covid-19 dengan Metode Klasifikasi Naïve Bayes’ that the cov...Read More
Climate change Research Articles published between Oct 11, 2021 to Oct 17, 2021
Oct 18, 2021
Articles Included: 5
Junjie Jia et al. (2021) reported in ‘Driving mechanisms of gross primary productivity geographical patterns for Qinghai–Tibet Plateau lake systems’ t...Read More