Evaluating the effectiveness of Emissions Tax Policies in Promoting Carbon Capture and Storage (CCS) in Norwegian Waste Management
Abstract
Global climate change presents an urgent challenge, exacerbated by the continuous rise in greenhouse gas (GHG) emissions. As a significant contributor to these emissions, the waste management sector requires innovative strategies to mitigate its impact. Carbon Capture and Storage (CCS) is recognized as a key technology to reduce carbon dioxide (CO2) emissions, offering substantial potential in waste management. Despite Norway's ambitious climate commitments and the imposition of high carbon taxes since 1999, the adoption of CCS in the waste incineration industry remains minimal. This study critically evaluates the effectiveness of Norway’s emissions tax policies in incentivizing the adoption of CCS technologies within the waste management sector. This study analyzes empirical data from existing facilities and models potential outcomes under various tax scenarios to provide insights into the effectiveness of emissions taxes and the role of complementary policies, such as subsidies, in driving CCS adoption. Key findings suggest that while Norway’s current emissions tax structure has been somewhat effective in reducing overall waste-related emissions, it has not been sufficient to overcome the financial and technical barriers associated with CCS deployment. The research indicates that an increase in the emissions tax, coupled with targeted subsidies, could significantly enhance the financial viability of CCS technologies, thereby promoting their adoption in the waste sector. The findings call for a more direct approach to carbon pricing, one that aligns financial incentives with technological advancements to ensure that the waste management sector can significantly contribute to global efforts in reducing GHG emissions.
Keywords: Carbon Capture and Storage, Emission Tax Policies, Waste Management, Climate Change Mitigation, Greenhouse Gas Emissions.