Shi et al. (2026): Renewable energy vs. direct air capture and utilization at the macroeconomic level: A Computable General Equilibrium analysis in Japan
Bo Shi, Alexander Ryota Keeley and Shunsuke Managi, IN: Journal of Cleaner Production, https://doi.org/10.1016/j.jclepro.2026.147536
Mitigating global warming relies on a combination of carbon pricing and the development of renewable energy (RE) and negative emission technologies. RE is a completely clean energy source to replace traditional fossil fuels, and direct air capture (DAC) can effectively reduce carbon dioxide concentration in the atmosphere. With technological advancement, membrane-based DAC with utilization of gas conversion (DAC-U) shows potential for carbon abatement; however, research into the large-scale deployment of DAC remains insufficient at the macroeconomic level. Furthermore, carbon pricing’s potential negative impact on the large-scale deployment of DAC-U and its effects on RE development remain underexplored.