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The External Cost of European Crude Oil Imports

  • Andrea Bigano

    (Fondazione Eni Enrico Mattei)

  • Mariaester Cassinelli

    (Fondazione Eni Enrico Mattei)

  • Fabio Sferra

    (Fondazione Eni Enrico Mattei)

  • Lisa Guarrera

    (Observatoire Méditerranéen de l'Energie)

  • Sohbet Karbuz

    (Observatoire Méditerranéen de l'Energie)

  • Manfred Hafner

    (Fondazione Eni Enrico Mattei and Observatoire Méditerranéen de l'Energie)

  • Anil Markandya

    (Fondazione Eni Enrico Mattei, University of Bath and Basque Centre for Climate Change Research)

  • Ståle Navrud

    (Norwegian University of Life Sciences)

This paper is the first to assess operational and probabilistic externalities of oil extraction and transportation to Europe on the basis of a comprehensive evaluation of realistic future oil demand-supply scenarios, of the relative relevance of import routes, of the local specificities in terms of critical passages and different burdens and impacts along import routes. The resulting externalities appear reasonable both under the assumption of high future demand and under low demand. Estimates range from 2.32 Euro in 2030 in the low demand scenario to 2.60 Euro in 2010 in the high demand scenario per ton of imported oil.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.13.

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Date of creation: Feb 2009
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Handle: RePEc:fem:femwpa:2009.13
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