1. R&D efficiency in CCUS technology: An international comparison using 2 stage network DEA
Policy
Session
Junhee Bae*, Jaewook Lee*, Hangyeol Seo**, Yanghon Chung**
*Korea Institute of Geoscience and Mineral Resource, Future research division
**Business and Technology Management, Korea Advanced Institute of Science and Technology

2. Contents Introduction 3 Literature review 5 Data 6 Methodology 7
5. Research structure and expected implications 9

3. 1. Introduction
Why CCUS Technology?
- Expected CO2 reduction contribution of greenhouse gas reduction technology families
1) Energy source technology (38%): Renewable energy and hydrogen / fuel cell / nuclear power
2) High-efficiency technology (43%): Improve process and efficiency
3) Post-processing technology (19%): CCUS technology
※ Carbon Capture and Storage: The solutions for deep emissions reduction, IEA, 2015
CCUS technology is only one technology capable of directly removing GHGs
CO2 Capture
CO2 Transport 1 2 3
CO2 Storage
CO2 Utilization 4

4. R&D efficiency by country
1. Introduction
Research Gap
CCUS R&D strategy
Previous study
Carbon capture and storage (Gibbins & Chalmers, 2008)
Technology and demand forecasting for carbon capture and storage technology in south Korea (Shin et al, 2016)
Lack of studies on CCUS R&D efficiency by country
R&D efficiency by country
Concentrate on the CCUS R&D efficiency by country using CCUS patent and paper data.
Measuring productivity of research in economics: A cross-country study using DEA (Kocher et al, 2006)
Relative efficiency of R&D activities: A cross-country study accounting for environmental factors in the DEA approach (Wang & Huang, 2007)
Research purpose
Examining the CCUS’s R&D efficiency in 15 OECD countries
Analyzing the CO2 storage’s R&D efficiency in 6 CO2 storage leading countries

5. CCUS technology & status
2. Literature review
CCUS technology & status
1. Technology and demand forecasting for carbon capture and storage technology in Korea, Energy policy, 2016
In this research, Forecasting CCS technology and demand based on an integrated model
The US has the most competitive CCS technology followed by Korea and France.
Data: CCS technology patent data, CCS and renewable energy source data
2. Carbon capture and storage, Energy policy, 2008
To review recent CCS technology (include CO2 storage)
3. Prospects for Carbon Capture and Storage Technologies, Annual Review of Environment and Resources , 2004
To examine CCS prospects such as feasibility, cost, timing, environmental effect
4. Carbon Capture and Storage: The solutions for deep emissions reduction, IEA, 2015
Norway continues to promote CO2 storage using natural gas facilities (CO2 storage leading country)
US, EOR (Enhanced oil recovery) technology has been used, and over 6,600 km of CO2 transport pipeline has been established (CO2 transport & storage leading country)

6. 3. Data CCUS R&D Spending (by country/technology)1
CCUS R&D Spending (by country/technology)
: IEA CCS R&D Spending by country ( ) 2
CCUS Triad patent families analysis ( )
: Through WIPS DB, Extracting the domestic/foreign patent candidate database for the by using the keyword search for each technology.
DB is confirmed through technical/policy expert review 3
CCUS SCI Paper analysis ( )
Through Web of science(Thomson reuters) , Extracting the SCI paper candidates using keyword search for technology, DB is confirmed through technical/policy expert review

7. 4. Methodology
Data Envelopment Analysis (DEA)
- Non parametric function (Using linear programming)
- Cannot consider probability error
- Handling multiple inputs and multiple outputs 1
Stochastic Frontier Analysis (SFA)
- Parametric function (Using econometrics method)
- Consider probability error
- Cannot handle multiple inputs and multiple outputs 2
Select DEA
R&D activity consider multiple inputs and multiple outputs!*
* 효율성 분석 이론과 활용 (김성호 외, 2007)

8. Using 2-stage network DEA
4. Methodology
Using 2-stage network DEA
Kao & Hwang (2008), the conventional DEA model by taking into account the series of two sub-processes within the whole process ((1) to (2), (2) and (3))
Under this framework, the efficiency of the whole process can be decomposed into the two sub-processes
In this research, we can call 1st stage as innovation creation stage and 2nd stage as value creation stage
Innovation creation stage
Value creation stage
Input
Output
Outcome
R&D spending
Patent activity index
# of triad patent families
# of SCI papers
Patent/Paper Citation
Patent Index (PII, TI)

9. # patents: Triad patent families
5. Research structure and expected implications
Research structure
CCUS tech
( )
1) R&D Spending by country
2) Patent activity Index (AI)
CCUS Tech
( )
# patents: Triad patent families
# papers: SCI papers
(Based on )
1) Patent/Paper Citation
2) Patent Index (PII, TI)
Input
Output
Outcome
CCUS Storage tech
OECD
15 countries
CCUS Storage
6 major
Countries
Implication 1
Implication 2
Innovation creation stage
Value creation stage

10. Expected implications
5. Research structure and expected implications
Expected implications
Understanding the behavior of CCUS leading countries' using R&D investment and creating R&D output and outcome
Analyzing the R&D investment behavior of CCUS leading countries, suggestions can be given to developing countries
As CO2 storage technology is expected to play a major role in reducing GHG emissions, it would be meaningful to analyze the CO2 storage technology productivity of CO2 storage leading countries.

11. #. Q&A