Implementation of Emission Trading in Carbon Dioxide Sequestration Optimization Management

As an effective mid- and long- term solution for large-scale mitigation of industrial CO2 emissions, CO2 capture and sequestration (CCS) has been paid more and more attention in the past decades. A general CCS management system has complex characteristics of multiple emission sources, multiple mitigation technologies, multiple sequestration sites, and multiple project periods. Trade-off exists among numerous environmental, economic, political, and technical factors, leading to varied system features. Sound decision alternatives are thus desired for provide decision supports for decision makers or managers for managing such a CCS system from capture to the final geologic storage phases. Carbon emission trading has been developed as a cost-effective tool for reducing the global greenhouse gas emissions. In this study, a carbon capture and sequestration optimization management model is proposed to address the above issues. The carbon emission trading is integrated into the model, and its impacts on the resulting management decisions are analyzed. A multi-source multi-period case study is provided to justify the applicability of the modeling approach, where uncertainties in modeling parameters are also dealt with.