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Course set for a cap? A case study among ship operators on a maritime ETS

: Koesler, Simon; Achtnicht, Martin; Köhler, Jonathan


Transport policy 37 (2015), Nr.1, S.20-30
ISSN: 0967-070X
Fraunhofer ISI ()
Emission Trading Scheme ETS; international shipping; maritime emissions

International shipping is an important emitter of greenhouse gases. The International Maritime Organization (IMO) is discussing different approaches to reduce maritime CO2 emissions, in particular market-based mechanisms. In this paper, we assess potential implications of a maritime emission trading scheme (ETS) on the organisation and operations of shipping companies, primarily on the basis of a case study involving ship operators. Our results suggest that there is no major reason why a cap-and-trade approach should not work in the shipping sector in practice. A maritime ETS has the potential to engage this sector into cost-efficient emission reduction if designed to account for the special characteristics of the international shipping industry.