Assessing the Socio-Economic Effects of Carbon Capture, Utility and Storage Investment From the Perspective of Carbon Neutrality in China

Carbon Capture, Utility and Storage (CCUS) is essential for achieving carbon neutrality and has great development potential in China. CCUS, as a long-term new investment, can address global warming and has significant social and economic impacts. This paper assessed the socio-economic effects of CCUS investment based on carbon neutrality in China by combining the dynamic GTAP model and the Input-output method. The result indicates that: CCUS investment may accumulate US$ 67.09 billion and US$ 776.61 billion from 2026 to 2030 and 2056 to 2060, respectively, based on International Energy Agency (IEA) investment scenario. Moreover, the corresponding value may increase to 8.26 billion and 743.21 billion US dollars from 2026 to 2030 and 2056 to 2060, respectively, based on Asian Development Bank (ADB) investment scenario; CCUS investment may stimulate gross value-added of US$ 1.2 billion and US$ 10.4 billion based on ADB and IEA investment scenarios, respectively. CCUS investment may mainly promote the machinery industry, metal manufacturing industry, other service industries, power equipment manufacturing industry, and light processing manufacturing industry; Furthermore, ADB and IEA investment scenarios showed that CCUS industrial investment may indirectly create about 12,796 and 103,886 jobs, respectively, and US$ 85 million and US$ 692 million of labor employment income, respectively, in 2030. The corresponding values may increase to 0.82 million and 0.85 million jobs, respectively, and US$ 5,168 and US$ 5,396 million employment income, respectively, in 2060.

Automated summary

Carbon Capture, Utility and Storage (CCUS) is crucial for achieving carbon neutrality in China and has immense development potential. This study highlights the significant socio-economic impacts of CCUS investment, including job creation and increased economic value.