The design of a regulatory framework for a carbon dioxide pipeline network

A Carbon Capture and Storage (CCS) system provides the opportunity to maintain the use of fossil fuels without the harmful CO2 emissions to the atmosphere. CO2 is captured at the source and then transported to a CO2 sink, where it is stored under ground; the emission of CO2 to the atmosphere is avoided.

The most likely form of onshore transportation of CO2 is by using a network of pipelines. This research connects the general characteristics of networked infrastructure to the case of onshore CO2 networks. The discussion on liberalizing infrastructures, regulations on vertical integration and the issue of ownership of a network also play a role with CO2 networks. The existing literature on CCS and regulation concentrates on the implementation of CCS systems: building the regulatory framework for planning and safety issues, and creating financial incentives such as feed-in tariffs. This research extends the need for regulation to economic regulation of a CO2 network, which provides a critical step for the creation of a CO2 market.