Economy-wide impact analysis of a carbon tax on international container shipping
International shipping is a vital channel linking the world economy, particularly from the perspective of international commodity trade. The recently proposed carbon regulation in international shipping will not only affect the competitiveness of shipping lines, but will also have implications for the global economy. This paper adopts an energy–environmental version of the Global Trade Analysis Project referred to as GTAP-E to analyze the quantitative effects of a maritime carbon tax on the global economy by placing a special focus on containerizable commodities given their significant role in international trade. The major advantage of the GTAP-E model is that it can capture the effects of asymmetric changes in freight costs on different routes caused by the maritime carbon tax. Based on our numerical results, imposing a maritime carbon tax on international container shipping will not lead to a significant economic impact unless the tax level is high. China will suffer the greatest real GDP loss among all countries. Under a high level of global maritime carbon tax ($90/tCO2), the real GDP loss to China will be around 0.02%. The negative economic impacts on the European countries will be greater if a maritime carbon tax is imposed only on the European container exporting/importing routes, compared to the situation where a global maritime carbon tax is imposed on container shipping. Finally, the imposition of a maritime carbon tax will discourage distant container trade on the routes (origin–destination) “China–USA”, “Rest of Asia–USA”, and “South America–China”.
Volume (Year): 58 (2013)
Issue (Month): C ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Lindstad, Haakon & Asbjørnslett, Bjørn E. & Strømman, Anders H., 2011. "Reductions in greenhouse gas emissions and cost by shipping at lower speeds," Energy Policy, Elsevier, vol. 39(6), pages 3456-3464, June.
- Axel Michaelowa & Karsten Krause, 2000. "International maritime transport and climate policy," Intereconomics: Review of European Economic Policy, Springer, vol. 35(3), pages 127-136, May.
- Cristea, Anca & Hummels, David & Puzzello, Laura & Avetisyan, Misak, 2013.
"Trade and the greenhouse gas emissions from international freight transport,"
Journal of Environmental Economics and Management,
Elsevier, vol. 65(1), pages 153-173.
- Anca D. Cristea & David Hummels & Laura Puzzello & Misak G. Avetisyan, 2011. "Trade and the Greenhouse Gas Emissions from International Freight Transport," NBER Working Papers 17117, National Bureau of Economic Research, Inc.
- Anger, Annela, 2010. "Including aviation in the European emissions trading scheme: Impacts on the industry, CO2 emissions and macroeconomic activity in the EU," Journal of Air Transport Management, Elsevier, vol. 16(2), pages 100-105.
- Scheelhaase, Janina D. & Grimme, Wolfgang G., 2007. "Emissions trading for international aviationâ€”an estimation of the economic impact on selected European airlines," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 253-263.
- Lindstad, Haakon & Asbjørnslett, Bjørn E. & Strømman, Anders H., 2012. "The importance of economies of scale for reductions in greenhouse gas emissions from shipping," Energy Policy, Elsevier, vol. 46(C), pages 386-398.
- Lucas M Z Mendes & Georgina Santos, 2008. "Using economic instruments to address emissions from air transport in the European Union," Environment and Planning A, Pion Ltd, London, vol. 40(1), pages 189-209, January.
- Sven Bode & J�rgen Isensee & Karsten Krause & Axel Michaelowa, 2002. "Climate Policy: Analysis of Ecological, Technical and Economic Implications for International Maritime Transport," Maritime Economics and Logistics, Palgrave Macmillan, vol. 4(2), pages 164-184, June.
- Ariyasajjakorn, Danupon & Gander, James P. & Ratanakomut, Somchai & Reynolds, Stephen E., 2009. "ASEAN FTA, distribution of income, and globalization," Journal of Asian Economics, Elsevier, vol. 20(3), pages 327-335, May.
- Burniaux, Jean-Marc & Truong Truong, 2002. "GTAP-E: An Energy-Environmental Version of the GTAP Model," GTAP Technical Papers 923, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Kitwiwattanachai, Anyarath & Nelson, Doug & Reed, Geoffrey, 2010. "Quantitative impacts of alternative East Asia Free Trade Areas: A Computable General Equilibrium (CGE) assessment," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 286-301, March.
- McDougall, Robert & Alla Golub, 2007. "GTAP-E: A Revised Energy-Environmental Version of the GTAP Model," GTAP Research Memoranda 2959, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:58:y:2013:i:c:p:87-102. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.