Capped Steam Ahead - A Case Study Among Ship Operators on a Maritime ETS
Centre for European Economic Research (ZEW) - Environmental and Resource Economics, Environmental Management Research
Centre for European Economic Research (ZEW)
University of Cambridge - Faculty of Economics and Politics
ZEW - Centre for European Economic Research Discussion Paper No. 12-044
International shipping is an important emitter of greenhouse gases. The International Maritime Organization (IMO) is discussing different approaches to reduce maritime CO2 emissions, in particular market-based mechanisms. In this paper, we assess potential implications of a maritime emission trading scheme (ETS) on the organisation and operations of shipping companies, primarily on the basis of a case study involving ship operators. Our results suggest that there is no knock-out criterion why a cap-and-trade approach should not work in the shipping sector in practice. A maritime ETS has the potential to engage this sector into cost-efficient emission reduction if designed to account for the special characteristics of the international shipping industry.
Number of Pages in PDF File: 27
Keywords: Emission trading, international shipping, maritime emissions
JEL Classification: L91, Q54, Q58, R48working papers series
Date posted: July 15, 2012
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