Developing a Regulatory Framework for CCS Transportation Infrastructure (Volumes 1 and 2)
In this report for the UK Department of Energy and Climate Change, a NERA team analyzes the regulatory framework options for CO2 pipelines used in projects for Carbon Capture and Storage (CCS). The report discusses the nature of externalities affecting incentives and the scope of economies of scale, drawing on a companion report by consulting engineers Parsons Brinckerhoff. The authors conclude that a framework of regulated contracts would permit efficient competition in the construction of the pipelines, as long as the UK Government can provide investors with a credible long-run value for CO2 sequestration. Volume 1 provides the team's analysis and conclusions, while Volume 2 presents detailed case studies of regulatory frameworks in other industries and jurisdictions.
Volume 1 is available here.
Volume 2 is available here.