Scandinavian Working Papers in Economics

Working papers in Transport Economics,
CTS - Centre for Transport Studies Stockholm (KTH and VTI)

No 2011:12: The financial implications of a levy & GHG Fund

Per Kågeson ()
Additional contact information
Per Kågeson: KTH, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

Abstract: This paper reviews the financial capabilities of a levy on carbon dioxide emissions from international shipping as proposed in the International Maritime Organization (IMO) by Cyprus, Denmark, the Marshall Islands and Nigeria. The conclusion is that a relatively high levy would be required to create the resources needed for satisfying all four objectives brought forward by the proponents and in addition provide compensation to developing countries based on the principle of no net incidence. Choosing a low and stable rate would force the decision maker to forsake the task of offsetting any shipping emissions above a proposed (declining) cap, which would make the scheme less environmentally effective.

Keywords: Shipping; climate change; IMO; market-based measures

JEL-codes: Q53; R48

7 pages, November 16, 2011

Full text files

CTS2011-12.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to CTS ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:11:08.