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Using Reverse Auctions in a Carbon Capture and Sequestration (CCS) Deployment Program
The document proposes a reverse auction system for CCS deployment, where the government procures CO2 sequestration by awarding incentives to the lowest bidders. It suggests separate auctions for projects with and without enhanced oil recovery (EOR) access and a grant loan program to mitigate early development risks. The author argues that this market-based approach is more efficient than fixed-level incentives, potentially doubling the capacity deployed compared to mechanisms proposed in the Kerry-Boxer bill.
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Document type: Research paper
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