Market-pull, technology-push, and regulatory stringency determinants: All in need in firms' decisions for large-scale demonstration of direct air capture technologies

Abstract

Carbon dioxide removal approaches such as direct air carbon capture and storage (DACCS) technologies have come to the fore as essential mitigation options to limit the increase in global warming to 1.5 °C. Previous studies have touched upon the technical, economic, environmental, and social and political feasibilities of DACCS technologies. These studies have commonly found that these technologies are not yet suitable for widespread deployment. However, large-scale demonstration projects have recently been successful, and facility construction for deployment is ongoing. There is a lack of studies exploring firm-level behaviors in DACCS technologies. What behavioral determinants are responsible for firms undertaking large-scale demonstrations and deployment with innovative but uncertain DACCS technologies? Using an analytical framework that included market pull, technology push, and regulatory stringency determinants, a case study of the firm, Carbon Engineering, was conducted. The results reveal that the most important determinants are regulatory factors that are vital for mobilizing financial resources.