Analysis of cost and technological diffusion of carbon capture and storage for China - Based on Chinese energy economic endogenous technological model

In this paper, we explore the cost evolution and technological diffusion of CCS in the policy context by building an economy-environmental endogenous technological model. We find that CCS is difficult to get its long-term cost advantage, as compared to wind and nuclear, and the increasing of fuel cost should be responsible for this; Resource usage of CO₂ could hedge against the use cost of CCS to some extent, while only the fuel cost is relatively stable, would this hedge effect be significant; The effect of CO₂ resource usage on the penetration of CCS heavily depends on the CO₂ amount used as resource, the introduction of subsidy policy will significantly improve this effect and promote CCS diffuse earlier.