http://iopscience.iop.org/article/10.1088/1748-9326/11/9/095004/meta;jsessionid=C5BD201DEE5155E6C96E2A0634A0EEF3.c2.iopscience.cld.iop.org

Environmental Research Letters

LETTER • OPEN ACCESS

Global economic consequences of deploying bioenergy with carbon capture and
storage (BECCS)

Matteo Muratori, Katherine Calvin,Marshall Wise, Page Kyle and Jae Edmonds

Published 31 August 2016
Environmental Research Letters,
Volume 11, Number 9
Focus on Negative Emissions Scenarios and Technologies

Abstract

Bioenergy with carbon capture and storage (BECCS) is considered a potential
source of net negative carbon emissions and, if deployed at sufficient
scale, could help reduce carbon dioxide emissions and concentrations.
However, the viability and economic consequences of large-scale BECCS
deployment are not fully understood. We use the Global Change Assessment
Model (GCAM) integrated assessment model to explore the potential global
and regional economic impacts of BECCS. As a negative-emissions technology,
BECCS would entail a net subsidy in a policy environment in which carbon
emissions are taxed. We show that by mid-century, in a world committed to
limiting climate change to 2 °C, carbon tax revenues have peaked and are
rapidly approaching the point where climate mitigation is a net burden on
general tax revenues. Assuming that the required policy instruments are
available to support BECCS deployment, we consider its effects on global
trade patterns of fossil fuels, biomass, and agricultural products. We find
that in a world committed to limiting climate change to 2 °C, the absence
of CCS harms fossil-fuel exporting regions, while the presence of CCS, and
BECCS in particular, allows greater continued use and export of fossil
fuels. We also explore the relationship between carbon prices, food-crop
prices and use of BECCS. We show that the carbon price and biomass and food
crop prices are directly related. We also show that BECCS reduces the
upward pressure on food crop prices by lowering carbon prices and lowering
the total biomass demand in climate change mitigation scenarios. All of
this notwithstanding, many challenges, both technical and institutional,
remain to be addressed before BECCS can be deployed at scale.

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