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 ()
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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

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CTS2011-12.pdf PDF-file 

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