Edenhofer et al. (2023): On the Governance of Carbon Dioxide Removal – A Public Economics Perspective
Ottmar Edenhofer, Max Franks, Matthias Kalkuhl, Artur Runge-Metzger; CESifo Working Paper No. 10370
This working paper highlights the importance of carbon dioxide removal (CDR) technologies for climate policy. The authors first describe their role in iconic transformation pathways and discuss removal costs and storage duration of different technologies. Based on economic principles, the authors characterize optimal removal flows and reservoirs for non-permanent removals. Furthermore, they discuss different pricing regimes that achieve an optimal allocation under different information and liability conditions.