The Effects Of Carbon And On Fossil - Likely
Uncertainty surrounding if and when the U. To quantify the macroeconomic impacts of this climate policy risk, we develop a dynamic, general equilibrium model that incorporates beliefs about future climate policy. We find that climate policy risk reduces carbon emissions by causing the capital stock to shrink and become relatively cleaner. Our results reveal, however, that a carbon tax could achieve the same reduction in emissions at less than half the cost. Download PDF pdf, Reader Mode Off. High Contrast Off. Reset to Default. Economic Research. Publications Working Papers. The Effects Of Carbon And On Fossil.![[BKEYWORD-0-3] The Effects Of Carbon And On Fossil](https://www.researchgate.net/publication/321778535/figure/download/fig2/AS:571275002691584@1513213982243/Effects-of-a-carbon-tax-on-fossil-fuel.png)
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A techno-economic analysis of viable scenarios for the aviation industry to achieve net-zero CO 2 emissions is presented. All routes are feasible and have their advantages and shortcomings. A quantitative assessment of these scenarios and of a business-as-usual BAU scenario, where aviation emissions are subjected to a carbon tax, is performed based on jet fuel cost and carbon price projections until Cost reductions due to wide deployment and economy of scale of current low-maturity technologies are accounted for.

Parametric and Monte Carlo sensitivity analyses are performed to assess the effects of uncertainty associated with the most relevant techno-economic quantities on the observed trends. Findings show that CCS-based scenarios consistently lead to lower jet fuel costs than CCU-based scenarios across the considered time scenarios and sensitivity analyses. This is mainly due to the fact that CCU-based routes result in an energy consumption more than 20 times higher than CCS-based routes, which also implies higher CO 2 emissions when considering the carbon intensity of current electricity grids.
This Efrects is part of the Enrico Tronconi Festschrift special issue. Figure 1.
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Schematic depiction of the five investigated scenarios for the aviation industry. Jet fuel use is common to all scenarios considered. The use of 1 tJF emits ca. The emissions caused Ecfects the jet fuel use are subjected to a carbon tax. Here, we consider a carbon tax with a value consistent with the price range needed to achieve the Paris Agreement temperature target as indicated by the World Bank.
1. Introduction
Jet fuel production refers to the conventional production of kerosene from crude oil. Since the cost of fossil jet fuel production varies largely with the crude oil price, a sensitivity analysis is carried out on this and other parameters to assess the influence of our assumptions on the results see Section 5.
The DAC unit is modeled as in a recent paper, and it consumes 0.]
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