The prospects for coal-to-liquid conversion: A general equilibrium analysis

► We apply an economy-wide model to assess the economics of coal-to-liquid (CTL) conversion. ► Our approach allows us to consider how CTL competes with other conversion technologies. ► We find that without climate policy, CTL may account for a third of global liquid fuels by 2050. ► With climate policy, CTL may not be viable due to high conversion cost and huge carbon footprint. ► Although adding CCS reduces CO2 emissions, the additional cost would make CTL less competitive.