Adoption Strategies for CCUS Business Models: Transaction Costs, Subsidies, and Evolutionary Dynamics in China’s Coal Power

Linhui Sun; Chongxin Fu; Ziyi Cheng; Xinping Wang; Chang Su

doi:10.2991/978-2-38476-611-6_83

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Adoption Strategies for CCUS Business Models: Transaction Costs, Subsidies, and Evolutionary Dynamics in China’s Coal Power

Authors

Linhui Sun¹, Chongxin Fu¹, Ziyi Cheng¹, Xinping Wang¹, Chang Su¹^{, *}

¹Xi’an University of Science and Technologygy, Xi’an, 710054, China

^*Corresponding author. Email: Chinasuchang@xust.edu.cn

Corresponding Author

Chang Su

Available Online 7 September 2026.

DOI: 10.2991/978-2-38476-611-6_83 How to use a DOI?
Keywords: Business model; CCUS; CFPP; Evolutionary game
Abstract: Coal-fired power plants (CFPPs) face increasing pressure to adopt carbon capture, utilization, and storage (CCUS) under China’s dual-carbon goals. This study develops an evolutionary game model between the government and CFPPs to examine how transaction costs and subsidies affect the adoption of three CCUS business models: vertical integration, CO₂ transporter, and joint venture. Results show that high transaction costs favor vertical integration through risk internalization, while lower costs make specialized models feasible and allow the CO₂ transporter model to outperform joint ventures. Subsidies shift transaction cost thresholds, supporting early commercialization but potentially reinforcing vertical integration and path dependence if overused. Simulations show that carbon utilization subsidies promote the transporter model, whereas storage subsidies may delay specialization. Policy should therefore shift toward carbon-market-based incentives and gradual subsidy withdrawal.
Copyright: © 2026 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 3.0 International License (http://creativecommons.org/licenses/by-nc/3.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the 2026 12th International Conference on Digital Humanities and Frontiers in Social Sciences (DHFSS 2026)
Series: Advances in Social Science, Education and Humanities Research
Publication Date: 7 September 2026
ISBN: 978-2-38476-611-6
ISSN: 2352-5398
DOI: 10.2991/978-2-38476-611-6_83 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 3.0 International License (http://creativecommons.org/licenses/by-nc/3.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Linhui Sun
AU  - Chongxin Fu
AU  - Ziyi Cheng
AU  - Xinping Wang
AU  - Chang Su
PY  - 2026
DA  - 2026/09/07
TI  - Adoption Strategies for CCUS Business Models: Transaction Costs, Subsidies, and Evolutionary Dynamics in China’s Coal Power
BT  - Proceedings of the 2026 12th International Conference on Digital Humanities and Frontiers in Social Sciences (DHFSS 2026)
PB  - Atlantis Press
SP  - 750
EP  - 760
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-611-6_83
DO  - 10.2991/978-2-38476-611-6_83
ID  - Sun2026
ER  -

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