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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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  • Miola, A. & Marra, M. & Ciuffo, B., 2011. "Designing a climate change policy for the international maritime transport sector: Market-based measures and technological options for global and regional policy actions," Energy Policy, Elsevier, vol. 39(9), pages 5490-5498, September.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:5490-5498
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    7. Ghaforian Masodzadeh, Peyman & Ölçer, Aykut I. & Ballini, Fabio & Christodoulou, Anastasia, 2022. "How to bridge the short-term measures to the Market Based Measure? Proposal of a new hybrid MBM based on a new standard in ship operation," Transport Policy, Elsevier, vol. 118(C), pages 123-142.
    8. Andreoni, V. & Galmarini, S., 2012. "European CO2 emission trends: A decomposition analysis for water and aviation transport sectors," Energy, Elsevier, vol. 45(1), pages 595-602.
    9. Ančić, Ivica & Šestan, Ante, 2015. "Influence of the required EEDI reduction factor on the CO2 emission from bulk carriers," Energy Policy, Elsevier, vol. 84(C), pages 107-116.
    10. Sheng, Dian & Li, Zhi-Chun & Fu, Xiaowen & Gillen, David, 2017. "Modeling the effects of unilateral and uniform emission regulations under shipping company and port competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 99-114.
    11. Bengtsson, Selma & Fridell, Erik & Andersson, Karin, 2012. "Environmental assessment of two pathways towards the use of biofuels in shipping," Energy Policy, Elsevier, vol. 44(C), pages 451-463.
    12. 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.
    13. Yuan, Jun & Ng, Szu Hui & Sou, Weng Sut, 2016. "Uncertainty quantification of CO2 emission reduction for maritime shipping," Energy Policy, Elsevier, vol. 88(C), pages 113-130.
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    15. Sheng, Yu & Shi, Xunpeng & Su, Bin, 2018. "Re-analyzing the economic impact of a global bunker emissions charge," Energy Economics, Elsevier, vol. 74(C), pages 107-119.

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