January 23, 2011

The Efficiency of Policy Instruments for the Deployment of CCS as a Large-sized Technology

by Dominique Finon

- This paper analyses a set of policy instruments designed to support investment during the learning phase of CCS technology, following the demonstration stage. The focus is on specific barriers to learning investment during early-commercial deployment. We analyze imperfections in the carbon price signal and market failures from barriers to large-sized innovative technology, which justify support during the learning investment phase and the initial roll out of CCS in electricity generation. Then we analyze and compare the efficiency of different ways to help CCS technology cross the so-called "death valley".

Finon, D. (2010). "The Efficiency of Policy Instruments for the Deployment of CCS as a Large-sized Technology." EPRG Working Paper No. 1035, Nov 2010.