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Alternative frameworks for cost-effectiveness analysis of environmental policies in maritime transport

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  • Paula C. Pereda

    (University of Sao Paulo)

  • Andrea Lucchesi

    (University of Sao Paulo)

Abstract

New rules and regulations in the maritime sector are under discussion to reduce GHG emissions. Decision-makers are keen to understand the effects of such policies, to choose the more cost-effective ways to reduce emissions from ships. In this paper, we propose two alternative frameworks, based on a global and integrated perspective, to assess the cost-effectiveness of the policies under discussion and, therefore, to contribute to this debate. We use two possible mitigation actions as examples: fuel tax adoption and speed reduction. We also present the most utilized partial equilibrium models (based on trade models) and general equilibrium models to evaluate economic and environmental effects of policies. We also indicate the necessary components to develop a specific general equilibrium model for environmental policy evaluation in the maritime sector. Finally, we compare the advantages and disadvantages of each approach and present ways to calculate the relevant indicators to support the decisions on the best policies to be implemented.

Suggested Citation

  • Paula C. Pereda & Andrea Lucchesi, 2022. "Alternative frameworks for cost-effectiveness analysis of environmental policies in maritime transport," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(3), pages 630-650, September.
    • Handle: RePEc:pal:marecl:v:24:y:2022:i:3:d:10.1057_s41278-022-00229-7
    DOI: 10.1057/s41278-022-00229-7
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    Cited by:

    1. Paula Pereda & Andrea Lucchesi & Thais Diniz & Rayan Wolf, 2023. "Carbon Tax in the Shipping Sector: Assessing Economic and Environmental Impacts," Working Papers, Department of Economics 2023_04, University of São Paulo (FEA-USP), revised 17 Jun 2024.
    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.

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