medium · GMAT Verbal

The global deployment of Carbon Capture and Storage (CCS) technology remains a contentious pillar of international climate policy, particularly regarding its economic viability in developing nations. In industrialized economies, CCS is often incentivized through tax credits and robust regulatory frameworks that penalize carbon emissions. However, in developing regions, where industrial growth remains a priority, the capital-intensive nature of CCS infrastructure presents a formidable barrier. Proponents of "technology transfer" argue that developed nations should subsidize the initial installation of CCS in emerging markets to prevent "carbon lock-in," a phenomenon where developing nations invest in traditional, high-emission energy infrastructure that remains operational for decades. Conversely, skeptics highlight the operational costs, noting that CCS reduces the net energy efficiency of power plants, thereby increasing the cost of electricity for populations that may already face energy poverty. This efficiency penalty necessitates a nuanced policy approach that balances immediate development goals with long-term climate targets. Effective implementation likely requires a multi-tiered financing mechanism: one that addresses the high upfront capital expenditures while providing ongoing operational subsidies to offset the efficiency losses inherent in the carbon capture process.

The passage suggests that "carbon lock-in" is a risk primarily because of which of the following?

  1. The inability of developed nations to provide subsidies for more than a single year.
  2. The immediate elimination of energy poverty through the use of high-emission infrastructure.
  3. The inherent technological superiority of traditional energy sources over Carbon Capture and Storage.
  4. The long operational lifespan of traditional energy infrastructure once it has been constructed.
  5. A regulatory framework in developing nations that mandates the use of high-emission energy.

Sign up free to see the explanation and track your rank →

More GMAT Verbal practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 89,613+ practice questions, 30,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials