In this thesis, three different economic models under an industrial organization
approach are presented modelling different types of carbon capture technology
adoption. The thesis aims to understand the incentives that drive a carbon capture
technology decision making at a firm level and develop policy solutions to inform
government and policymakers to increase carbon capture technology adoption.
The first model constructed considers a carbon capture and storage (CCS) technology
adoption in different competitive environments. The focus is to explore how
competition influences a firm’s decision toward CCS technology.
The second model investigates the strategic interaction that firms experience in an
industry where a firm adopts carbon capture and CO2 utilization (CCU). The model
also evaluates the environmental impact of a CCU industry, as a major drawback of
final goods produced by CO2 utilization is the carbon emissions are released back into
the atmosphere once consumed in the final goods market. In this chapter, a series of
policy solutions are proposed to obtain an increase in the adoption of CCU whilst
accomplishing a positive environmental impact.
The third model investigates the optimal CCS adoption decision time of a follower
influenced by a learning-by-doing and spillover effect. A follower is a firm that adopts
a second-generation CCS technology with a lower production cost caused by a learning
effect from a pioneer. A pioneer is a firm that adopts a first-generation CCS technology
with a high production cost, and it experiences a learning-by-doing effect. We
discover, that if the adoption of CCS technology is sequential, a pioneer is always at
an economic disadvantage by adopting first. The main contribution of this chapter
recommends a policy solution that balances the adoption cost of a pioneer and a
follower, achieving an increase in the diffusion of CCS technology.
|Date of Award||20 May 2022|
- University Of Strathclyde
|Sponsors||University of Strathclyde|
|Supervisor||John Quigley (Supervisor) & Alexander Dickson (Supervisor)|