Capped Steam Ahead - A Case Study Among Ship Operators on a Maritime ETS

27 Pages Posted: 15 Jul 2012

See all articles by Simon Koesler

Simon Koesler

ZEW – Leibniz Centre for European Economic Research - Environmental and Resource Economics, Environmental Management Research

Martin Achtnicht

Leibniz Institute of Urban and Regional Development; ZEW – Leibniz Centre for European Economic Research

Jonathan Köhler

University of Cambridge - Faculty of Economics and Politics

Date Written: 2012

Abstract

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.

Keywords: Emission trading, international shipping, maritime emissions

JEL Classification: L91, Q54, Q58, R48

Suggested Citation

Koesler, Simon and Achtnicht, Martin and Köhler, Jonathan, Capped Steam Ahead - A Case Study Among Ship Operators on a Maritime ETS (2012). ZEW - Centre for European Economic Research Discussion Paper No. 12-044, Available at SSRN: https://ssrn.com/abstract=2105631 or http://dx.doi.org/10.2139/ssrn.2105631

Simon Koesler (Contact Author)

ZEW – Leibniz Centre for European Economic Research - Environmental and Resource Economics, Environmental Management Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim
Germany

Martin Achtnicht

Leibniz Institute of Urban and Regional Development ( email )

Weberplatz 1
Dresden, 01217
Germany

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Jonathan Köhler

University of Cambridge - Faculty of Economics and Politics ( email )

Austin Robinson Building
Sidgwick Avenue
Cambridge, CB3 9DD
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
63
Abstract Views
664
rank
435,804
PlumX Metrics