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Regional carbon pricing for international maritime transport : challenges and opportunities for global geographical coverage

Author

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  • Dominioni,Goran
  • Heine,Dirk
  • Martinez Romera,Beatriz

Abstract

Although the existing literature identifies a fuel levy imposed by means of a global agreement as the most efficient policy for carbon pricing in the maritime sector, scholars and policy makers debate the possibility for regional measures to be introduced in case a global agreement cannot be achieved. This debate has highlighted several economic, legal, and political challenges that the implementation of an efficient and effective regional scheme would have to face. This paper compares the relative performance of various regional measures for carbon pricing based on the following criteria: jurisdictional basis, data availability, environmental effectiveness and avoidance strategies, impact on competitiveness, differentiation for developing countries, and incentives for reaching a global agreement. The main finding is that, if carefully designed, a cargo-based measure that covers the emissions released throughout the whole voyage to the cargo destination presents various advantages compared with other carbon pricing schemes. These advantages have been largely ignored in the literature.

Suggested Citation

  • Dominioni,Goran & Heine,Dirk & Martinez Romera,Beatriz, 2018. "Regional carbon pricing for international maritime transport : challenges and opportunities for global geographical coverage," Policy Research Working Paper Series 8319, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8319
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    File URL: http://documents.worldbank.org/curated/en/714251516824511861/pdf/WPS8319.pdf
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    Citations

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    Cited by:

    1. Pierre Cariou & Ronald A. Halim & Bradley J. Rickard, 2022. "Ship-owner Response to Carbon Taxes: Industry and Environmental Implications," Applied Economics and Policy Working Paper Series 320702, Cornell University, Department of Applied Economics and Management.
    2. Ulla Tapaninen & Riina Palu, 2022. "Recovery of ro-pax ferry traffic from covid-19 under tightening environmental regulations: case Helsinki-Tallinn," Journal of Shipping and Trade, Springer, vol. 7(1), pages 1-17, December.
    3. 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.
    4. Dirk Heine & Susanne Gäde, 2018. "Unilaterally removing implicit subsidies for maritime fuels," International Economics and Economic Policy, Springer, vol. 15(2), pages 523-545, April.
    5. Cariou, Pierre & Halim, Ronald A. & Rickard, Bradley J., 2023. "Ship-owner response to carbon taxes: Industry and environmental implications," Ecological Economics, Elsevier, vol. 212(C).

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