A new white paper published by LSU’s Center for Energy Studies suggests that carbon tax revenues could advance carbon capture, utilization and storage (CCUS), a technology that reduces CO2 emissions.
A carbon tax prices CO2 emissions equal to their environmental damages and is becoming a likely tool for Louisiana and 24 other states for reaching net-zero carbon emissions. Written by LSU Professor Brittany Tarufelli, the paper reviews the potential of utilizing carbon tax revenues to fund the research, development and implementation of CCUS.
“Policymakers have largely overlooked the possibility of recycling carbon tax revenues to incentivize and reduce the costs of CCUS,” Tarufelli says in a prepared statement. “This proposition would help emissions-intensive industry and smooth the transition to a lower-carbon economy.”
With global energy consumption forecast to grow 50 percent by 2050, industry and policymakers are being pressured to address the challenges of meeting rising energy demands while reducing CO2 emissions. “Advancing CCUS through carbon tax revenues would enable Louisiana’s emissions-intensive industries to meet CO2 reduction goals without drastic cuts in production,” Tarufelli says. “This approach would also reduce the tax burden on these industries and ultimately save consumers money.” Read the white paper.