Social costs and benefits of CCS RD&D by Joris Koornneef and Chris Hendriks
Carbon Capture and Storage (CCS) could play a significant role in curbing the CO2 emissions of the Dutch economy. Contrary to the large amount of studies examining the cost side of CCS deployment, limited studies have been performed that examine the economic value of CCS market development. Research and development (R&D) of CCS technologies is important to improve the performance and reduce costs. Next to R&D, also pilot and demonstration projects are needed to improve the technology and increase operational experience. This development will bring the technology towards a mature phase where it can be deployed on a commercial basis. Research Development & Deployment (RD&D) in CCS require high investments from the public and private sector, but the return on investment may be substantial. Investing in RD&D may provide strong social benefits in the form of performance enhancement and cost savings of the technology. Next to cost savings related to mitigating climate change the investment in CCS RD&D will also result in economic activity and competitive advantage for Dutch enterprises. This may create social benefits in the form of additional turnover, value added1 and creation of employment for the Dutch economy.