Social Marginal Abatement Cost of Negative Emissions : Incorporating Externalities into the Private Costs of Carbon Dioxide Removal

The essential role of Carbon Dioxide Removal (CDR) in mitigating further climate warming, alongside substantial emission reductions, is undeniable. However, the actions to remove carbon dioxide are not without consequences, necessitating the integration of external costs into decision-making processes based on cost-efficiency. Previous literature has dominantly focused on the private costs associated with carbon dioxide removal, excluding external costs and their impact on society. The objective of this thesis was to identify the Negative Emission Technologies and Practices (NETPs) that yield the lowest social costs, thereby providing insights into which NETPs should be prioritized for investments in CDR. This evaluation was conducted by developing a Social Marginal Abatement Cost Curve (SMACC) framework, to examine the potentials and social costs of various NETPs. The year under analysis was 2050, the target year for the European Union to achieve net-zero emissions. Results of a comprehensive life-cycle analysis, including impacts on human health and ecosystems, were monetized to establish external costs for each NETP. These external costs were subsequently incorporated with private costs, gathered from existing literature. The final step involved combining these social costs with NETPs’ removal potentials to construct the SMACC curve. The SMACC identified the most feasible NETPs as Bioenergy with Carbon Capture and Storage (BECCS) with combustion technology, Direct Air Capture and Storage (DACCS) with High-Temperature Solid-Sorbent technology, and Enhanced Weathering. The study found that each impact category had a considerably different impact on the SMACC results, with human health impacts and ecosystem impacts providing distinct insights. The socially optimal prioritization was proved to be significantly different from cost-effective prioritization, indicating the importance of incorporating external costs into the analysis. As key conclusions, the policies applied to NETPs necessitate careful application to avoid supporting the implementation of NETPs associated with high negative externalities. Furthermore, to achieve optimal outcomes across the globe, the SMACC necessitates careful consideration of the characteristics of each region where the NETPs are to be implemented. The thesis recommends further research on the economic valuation of LCA results.

Grantor dc:publisher

Helsingin yliopisto

Year dc:date.issued

2024

Author dc:creator

• Havukainen, Anna

Contributors dc:contributor

• Helsingin yliopisto, Maatalous-metsätieteellinen tiedekunta
• University of Helsinki, Faculty of Agriculture and Forestry
• Helsingfors universitet, Agrikultur- och forstvetenskapliga fakulteten

• Carbon Dioxide Removal
• Negative Emissions
• Social Marginal Abatement Cost
• SMACC

Language dc:language.iso

eng

Identifier URI

URN:NBN:fi:hulib-202404091663

OAI identifier oai:identifier

oai:helda.helsinki.fi:10138/574312