Optimal Carbon Dioxide Removal in Face of Ocean Carbon Sink Feedback

24 Pages Posted: 20 Dec 2017

See all articles by Vassiliki Manoussi

Vassiliki Manoussi

Athens University of Economics and Business

Soheil Shayegh

Bocconi University; European Institute on Economy and the Environment (EIEE)

Massimo Tavoni

Fondazione Eni Enrico Mattei (FEEM); Princeton University - Princeton Environmental Institute

Date Written: December 19, 2017

Abstract

Carbon dioxide removal (CDR) is a potentially important climate strategy for attaining low climate stabilization objectives. However, climate analysis has indicated a possible weakening of the ocean carbon sinks - the largest in the world - in relation to CDR deployment. Here, we provide an economic appraisal to assess the sensitivity of CDR and conventional abatement to CO2 outgassing from the oceans. We develop a theoretical framework to study the impact of the ocean-to-atmosphere transfer on the optimal mitigation strategies under different regimes that control the relationship between CO2 outgassing and the amount of CDR. We show that the optimal levels of emissions and CDR are correlated to the effectiveness of CDR expressed as a linear function of atmospheric concentrations. We incorporate this effect into an integrated assessment model of climate and economy (DICE model) and confirm the theoretical findings with numerical simulations. Further, we perform a sensitivity analysis to find the range of optimal abatement and CDR actions under different values of the CDR effectiveness coefficient.

Keywords: Climate Change, Outgassing, Carbon Dioxide Removal, Integrated Assessment Model (DICE)

JEL Classification: Q53, Q54

Suggested Citation

Manoussi, Vassiliki and Shayegh, Soheil and Tavoni, Massimo, Optimal Carbon Dioxide Removal in Face of Ocean Carbon Sink Feedback (December 19, 2017). FEEM Working Paper No. 57.2017. Available at SSRN: https://ssrn.com/abstract=3090311 or http://dx.doi.org/10.2139/ssrn.3090311

Vassiliki Manoussi (Contact Author)

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
Greece

Soheil Shayegh

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

European Institute on Economy and the Environment (EIEE) ( email )

Via Bergognone, 34
Milan
Italy

Massimo Tavoni

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
20123 Milan
Italy

Princeton University - Princeton Environmental Institute

22 Chambers Street
Princeton, NJ 08544-0708
United States

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