The impact of carbon capture, utilization, and storage (CCUS) projects on environmental protection, economic development, and social equity

Abstract

We present a Dynamic Computable General Equilibrium (DCGE) model to estimate the long-term impacts of CCUS on carbon emission reduction, energy structure, economic growth, and social welfare. Results show that CCUS contributes to optimizing energy structure led by renewable sources and raises the share of clean energy generation to 85.41%–89.84% in 2060. CCUS can help China achieve an earlier peak in carbon emissions and subsequent reductions, with the emission reduction contribution of CCUS estimated at 27.41%–65.00% of total emissions by 2060. Our findings suggest that CCUS has the potential to support China's sustained economic growth, with real GDP rising by 8.82%–18.16% in 2060 compared to the baseline scenario. Additionally, the CCUS fosters growth in social welfare and contributes to mitigating the urban-rural income disparity in the long term. The study broadens the scope of the economic assessment of CCUS and provides valuable insights to enhance comprehension of CCUS's strategic positioning and implementation.