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The financial implications of a Levy & GHG Fund

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  • Kågeson, Per

    ()
    (KTH)

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    Abstract

    This paper reviews the financial capabilities of a Levy on carbon dioxide emissions from international shipping as proposed in the International Maritime Organization (IMO) by Cyprus, Denmark, the Marshall Islands and Nigeria. The conclusion is that a relatively high levy would be required to create the resources needed for satisfying all four objectives brought forward by the proponents and in addition provide compensation to developing countries based on the principle of no net incidence. Choosing a low and stable rate would force the decision maker to forsake the task of offsetting any shipping emissions above a proposed (declining) cap, which would make the scheme less environmentally effective.

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    File URL: http://www.transguide.org/SWoPEc/CTS2011-12.pdf
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    Bibliographic Info

    Paper provided by CTS - Centre for Transport Studies Stockholm (KTH and VTI) in its series Working papers in Transport Economics with number 2011:12.

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    Length: 7 pages
    Date of creation: 16 Nov 2011
    Date of revision:
    Handle: RePEc:hhs:ctswps:2011_012

    Contact details of provider:
    Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
    Web page: http://www.kth.se/abe/om_skolan/organisation/centra/cts

    Related research

    Keywords: Shipping; climate change; IMO; market-based measures;

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