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Economic savings linked to future Arctic shipping trade are at odds with climate change mitigation

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  • Lindstad, Haakon
  • Bright, Ryan M.
  • Strømman, Anders H.

Abstract

This paper assesses costs, emissions, and climate impact by freight shipping in the Arctic with main focus on the Northern Sea Route. The entire route lies in Arctic waters, which due to global warming, has become ice free during summer and autumn. The route goes from the Atlantic Ocean to the Pacific Ocean along the Russian Arctic coast and reduces voyage distance by 40% between Northern Europe and Japan. Traditionally, comparisons of the climate impact of transport solutions have been based on fuel consumption and carbon dioxide (CO2), while other trace emissions in the exhaust gas have been ignored. It is becoming increasingly well-known however, that aerosols, and their precursors emitted from shipping are strong climate forcers, with a magnitude that is intimately connected to the specific region of emission. Taking into account these considerations, we apply region-specific Global Warming Potential (GWP) characterization factors to estimate the relative magnitude of the short-lived climate forcers in the Arctic compared to traditional shipping regions and to the impact of CO2 emissions in light of reduced overall fuel consumption. The results indicate that there are no general climate benefits of utilizing the Northern Sea Route, even with cleaner fuels, since the additional impact of emissions in the Arctic more than offsets the effect of shorter voyages. In terms of climate change mitigation, managing this trade-off will be challenging, as the Northern Sea Route offers cost savings per ton of freight transported.

Suggested Citation

  • Lindstad, Haakon & Bright, Ryan M. & Strømman, Anders H., 2016. "Economic savings linked to future Arctic shipping trade are at odds with climate change mitigation," Transport Policy, Elsevier, vol. 45(C), pages 24-30.
  • Handle: RePEc:eee:trapol:v:45:y:2016:i:c:p:24-30
    DOI: 10.1016/j.tranpol.2015.09.002
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    References listed on IDEAS

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    1. 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.
    2. Charles S. Zender, 2012. "Snowfall brightens Antarctic future," Nature Climate Change, Nature, vol. 2(11), pages 770-771, November.
    3. 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.
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    Citations

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    Cited by:

    1. Patrick Chaumette, 2017. "Economic challenge and new maritime risks management: What blue growth? [Challenge économique et maîtrise des nouveaux risques maritimes : Quelle croissance bleue]," Post-Print hal-01793050, HAL.
    2. Ran Zhang & Jasmine Siu Lee Lam & Zhuo Sun, 2024. "Evaluating the impact of Northern Sea Route fuel costs on bilateral trade between China and the EU," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 26(3), pages 436-461, September.
    3. Joseph, Lambert & Giles, Thomas & Nishatabbas, Rehmatulla & Tristan, Smith, 2021. "A techno-economic environmental cost model for Arctic shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 28-51.
    4. Laurent Fedi & Olivier Faury & Laurent Etienne & Ali Cheaitou & Patrick Rigot-Muller, 2024. "Application of the IMO taxonomy on casualty investigation: Analysis of 20 years of marine accidents along the North-East Passage," Post-Print hal-04483233, HAL.
    5. Lindstad, Haakon Elizabeth & Eskeland, Gunnar S. & Rialland, Agathe, 2016. "Batteries in Offshore Support vessels - Pollution, climate impact and economics," Discussion Papers 2016/21, Norwegian School of Economics, Department of Business and Management Science.
    6. Pierre Cariou & Ali Cheaitou & Olivier Faury & Sadeque Hamdan, 2021. "The feasibility of Arctic container shipping: the economic and environmental impacts of ice thickness," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(4), pages 615-631, December.
    7. Dai, Lei & Jing, Danyue & Hu, Hao & Wang, Zhaojing, 2021. "An environmental and techno-economic analysis of transporting LNG via Arctic route," Transportation Research Part A: Policy and Practice, Elsevier, vol. 146(C), pages 56-71.
    8. Koçak, Saim Turgut & Yercan, Funda, 2021. "Comparative cost-effectiveness analysis of Arctic and international shipping routes: A Fuzzy Analytic Hierarchy Process," Transport Policy, Elsevier, vol. 114(C), pages 147-164.
    9. Theocharis, Dimitrios & Pettit, Stephen & Rodrigues, Vasco Sanchez & Haider, Jane, 2018. "Arctic shipping: A systematic literature review of comparative studies," Journal of Transport Geography, Elsevier, vol. 69(C), pages 112-128.
    10. Xing, Hui & Spence, Stephen & Chen, Hua, 2020. "A comprehensive review on countermeasures for CO2 emissions from ships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    11. Kong, Qingxu & Jiang, Changmin & Ng, Adolf K.Y., 2021. "The economic impacts of restricting black carbon emissions on cargo shipping in the Polar Code Area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 147(C), pages 159-176.

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