While it may impact GDP, it may not impact productive output. Less stuff will be consumed for the same output. There will be impacts on how money is shuffled around; fossil fuel profits flow from fossil fuel share holders to CCS companies, fossil fuel workers will be displaced by CCS industry workers.
As renewables come online at cost parity, they will displace fossil fuel usage. That will cause a dramatic decline in fossil fuel price as oversupply becomes a constant problem. So people buying fossil fuel will be spending less for the same result.
Now, one might make the following observation; we've taken fossil fuel profits away and consumed them immediately rather then re-investing them (what capital owners typically do). This means less investment and thus growth. Frankly, I find the hypothesis not so compelling. There is little evidence that capital is the bottleneck in Capex spending. My view is the world suffers from too few good ideas chased by even fewer people/organizations and under the constraints of bumbling governments.
GDP issue aside, at 100$/ton this only adds 1$/gallon to the price of gas and 0.50$/therm to the price of natural gas. That's definitely absorbable by the declines that will happen from oversupply.
As renewables come online at cost parity, they will displace fossil fuel usage. That will cause a dramatic decline in fossil fuel price as oversupply becomes a constant problem. So people buying fossil fuel will be spending less for the same result.
Now, one might make the following observation; we've taken fossil fuel profits away and consumed them immediately rather then re-investing them (what capital owners typically do). This means less investment and thus growth. Frankly, I find the hypothesis not so compelling. There is little evidence that capital is the bottleneck in Capex spending. My view is the world suffers from too few good ideas chased by even fewer people/organizations and under the constraints of bumbling governments.
GDP issue aside, at 100$/ton this only adds 1$/gallon to the price of gas and 0.50$/therm to the price of natural gas. That's definitely absorbable by the declines that will happen from oversupply.