Impact of the Keystone XL pipeline on global oil markets and greenhouse gas emissions

The proposed Keystone XL pipeline to connect Canadian oil sands with US refineries and ports has attracted much controversy. Based on an economic model, this study finds that the biggest emissions impact of the pipeline may be due to its effect of lowering global oil prices and, in turn, increasing global oil consumption (and related emissions). The analysis therefore points to a gap in existing assessments of the Keystone XL project.

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