Carbon capture and storage (CCS) is a mitigation option for reducing greenhouse gas emissions, particularly in hard-to-abate sectors. It can also stimulate economic activity. However, as resources are constrained, financing CCS can divert funds from other uses that generate economic benefits. Additionally, public funds used in financing CCS projects have their opportunity costs in the form of forgone economic benefits of using them elsewhere in the economy. Understanding these trade-offs is important for policymakers. This study develops a CCS module and integrates it into the KAPSARC Global Energy Macroeconometric Model (KGEMM) to assess the macroeconomic, sectoral, and emissions implications of CCS deployment in Saudi Arabia.
