economics Paradigm Challenge

Using carbon capture to help pump more oil actually makes a country's total pollution go up in the long run.

SSRN · March 18, 2026 · 6432985

Robbie Southam, Zhong Fan, Ke Li

The Takeaway

Carbon capture (CCUS) is often hailed as a 'net-zero' savior, but this study shows that when it's linked to 'Enhanced Oil Recovery,' the resulting boost in oil production and systemic energy shifts actually outweigh the carbon being stored. It suggests that a primary policy for fighting climate change is currently making the problem worse.

From the abstract

Carbon capture, utilisation and storage (CCUS) is frequently positioned as a net-zero option, yet ex-post evidence on realised emissions outcomes from large-scale deployments remains limited—particularly where projects are linked to enhanced oil recovery (EOR). We assemble a harmonised annual country–sector panel (1980–2022) linking operational EOR-CCUS capacity to territorial sectoral CO2 emissions and energy-system and macroeconomic covariates. Seven country–sectors adopt EOR-linked CCUS over