Stanford Feature Highlights Study by MISES Researchers on Cement Decarbonization
A recent study by Stefan Reichelstein, Gunther Glenk, and Rebecca Meier provides the basis for a feature article published by the Stanford Graduate School of Business under the headline of its Energy Insights series.
The research focuses on the cement industry, which accounts for around 8% of global CO₂ emissions and is widely considered difficult to decarbonize. Deep emissions reductions have therefore often been associated with high costs.
The study takes a different approach. Rather than evaluating technologies in isolation, the researchers analyze how they interact. Their findings show that certain combinations can deliver significantly larger emissions reductions than previously assumed – at comparatively moderate cost.
For the European market, the results are specific: At a carbon price of around €85 per ton, emissions could be reduced by about one-third. At approximately €141, reductions of up to 96% are achievable, while production costs increase by only around 12%. Earlier studies had projected substantially higher cost increases.
Overall, the findings contribute to a more differentiated view of the economic implications of industrial decarbonization and provide companies with a clearer basis for determining the additional costs required for low-carbon production.