Economic assessment of the possible role of CDR technologies in long-term climate strategies for GCC Countries

Área de publicación Innovación, Emprendimiento y Sustentabilidad
Tipo de publicación Working Papers
Lugar de publicación UAI
Fecha de publicación 2020
Autores Frédéric Babonneau - Ahmed Badran; Maroua Benlahrech; Alain Haurie; Maxime Schenckery; Marc Vielle

This paper addresses the issue of assessing long-term strategies for Gulf Cooperation Council (GCC) in the perspective of the Paris agreement goal (limit to 2°C the surface atmospheric temperature increase by the end of the 21st century). In particular, one evaluates the possible role that carbon dioxide removal (CDR) technologies, allied to an international emissions trading market, could play in these strategies, as a way to mitigate welfare losses for GGC countries. To model the strategic context, one assumes that a global cumulative emissions budget has to be allocated among di↵erent coalitions of countries, GCC being one of them, and that an international emissions trading market is implemented. A meta-game model is proposed in which deployment of CDR technologies is a strategic variable and one assesses through simulations on a General Equilibrium model the possible economic impacts of their introduction.

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