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.

Which of the following can be most properly inferred about "industrialized economies" from the passage?

  1. They have regulatory or fiscal systems that make CCS more economically attractive to deploy.
  2. They have successfully eliminated energy poverty through the deployment of CCS infrastructure.
  3. Their power plants are fundamentally more energy-efficient than those in developing regions.
  4. They are the primary source of the technical innovations that lead to efficiency penalties in power plants.
  5. They prioritize international technology transfer over their own industrial growth targets.

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