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Designing a climate change policy for the international maritime transport sector: Market-based measures and technological options for global and regional policy actions

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  • Miola, A.
  • Marra, M.
  • Ciuffo, B.

Abstract

The international maritime transport sector has a significant abatement potential and some technical improvements that reduce GHG emissions would already be profitable without any policy in place. This paper analyses in-depth the limits and opportunities of policy options currently under consideration at the international level to stimulate the sector to reduce its GHG emissions. In particular, in order for the maritime transport sector to become more environmentally friendly, the flexible nature of international market-based measures and the European Union Emission Trading Scheme provide a definite window of opportunity without placing unnecessary high burden on the sector. However, the development of a regional policy, such as at European level, for the international maritime transport sector faces several obstacles: allocation of emissions, carbon leakage, permit allocation, treatment of the great variety in ship type, size and usage, and transaction cost. Global market-based policies could overcome most of these challenges. This paper provides an in-depth analysis of the policy instruments currently under discussion to reduce the sector's burden on the environment, and focuses on economic theory, legal principles, technological options, and the political framework that together make up the basis of decision-making regarding the international maritime transport sector's climate change policies.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 39 (2011)
Issue (Month): 9 (September)
Pages: 5490-5498

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Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:5490-5498

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Web page: http://www.elsevier.com/locate/enpol

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Keywords: Maritime transport Market-based measures Technological options;

References

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  1. Hahn, Robert W. & Stavins, Robert Norman, 2010. "The Effect of Allowance Allocations on Cap-and-Trade System Performance," Scholarly Articles 4449098, Harvard Kennedy School of Government.
  2. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
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  4. Sebastian Goers & Alexander Wagner & Jürgen Wegmayr, 2010. "New and old market-based instruments for climate change policy," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 12(1), pages 1-30, June.
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  6. Tom Tietenberg, 2003. "The Tradable-Permits Approach to Protecting the Commons: Lessons for Climate Change," Oxford Review of Economic Policy, Oxford University Press, vol. 19(3), pages 400-419.
  7. Warwick J. McKibbin & Peter J. Wilcoxen, 2002. "The Role of Economics in Climate Change Policy," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 107-129, Spring.
  8. William D. Nordhaus, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 686-702, September.
  9. Richard Baron & Barbara Buchner & Jane Ellis, 2009. "Sectoral Approaches and the Carbon Market," OECD/IEA Climate Change Expert Group Papers 2009/3, OECD Publishing.
  10. Weitzman, Martin L., 2009. "On Modeling and Interpreting the Economics of Catastrophic Climate Change," Scholarly Articles 3693423, Harvard University Department of Economics.
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Cited by:
  1. Dinwoodie, John & Tuck, Sarah & Rigot-Müller, Patrick, 2013. "Maritime oil freight flows to 2050: Delphi perceptions of maritime specialists," Energy Policy, Elsevier, vol. 63(C), pages 553-561.
  2. Lee, Tsung-Chen & Chang, Young-Tae & Lee, Paul T.W., 2013. "Economy-wide impact analysis of a carbon tax on international container shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 87-102.

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