The Impact of the Carbon Market on the Economics of CCUS
- 10.2991/iceesd-18.2018.99How to use a DOI?
- carbon market; carbon exchange prices; oil prices; CCUS
This paper aims to explore the direct and indirect economic impacts of the establishment of a Chinese carbon exchange market on carbon capture, utilization, and storage (CCUS) projects from both the qualitative and quantitative perspectives. Using Beijing carbon exchange center and Daqing oil price data from December 18, 2013 to December 20, 2017, the correlation between carbon prices and oil prices are examined through a co-integration test, VAR model, and an impulse response function chart. In addition, the relationship between oil prices and CCUS is analyzed, and the combined results are used to determine the economic effect of carbon prices on CCUS. The results show that the carbon market not only has a direct impact on the economic viability of each specific CCUS project, but also indirectly increases the resource income of most CCUS projects through the positive influence of carbon prices on oil prices. The formation of the carbon market and the increase in the carbon price will help increase the economic benefits of CCUS projects and promote their development and application. This provides a positive incentive for the creation of a nationwide carbon market to promote the development of CCUS projects.
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Jingyan Ma AU - Rong Kang AU - Migang Dong AU - Pual Conroyl PY - 2018/05 DA - 2018/05 TI - The Impact of the Carbon Market on the Economics of CCUS BT - Proceedings of the 2018 7th International Conference on Energy, Environment and Sustainable Development (ICEESD 2018) PB - Atlantis Press SP - 545 EP - 550 SN - 2352-5401 UR - https://doi.org/10.2991/iceesd-18.2018.99 DO - 10.2991/iceesd-18.2018.99 ID - Ma2018/05 ER -