Regional Carbon Pricing for International Maritime Transport: Challenges and Opportunities for Global Geographical Coverage

26 Pages Posted: 25 Jan 2018

See all articles by Goran Dominioni

Goran Dominioni

Dublin City University- School of Law and Government

Dirk Heine

Erasmus University Rotterdam (EUR) - Rotterdam Institute of Law and Economics; University of Hamburg - Institute of Law and Economics; University of Bologna - Department of Economics; World Bank, Macroeconomics, Trade and Investment Global Practice

Beatriz Martinez Romera

University of Copenhagen - Faculty of Law

Date Written: January 24, 2018

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.

Keywords: Judicial System Reform, Environmental Management, Environmental & Natural Resources Law, Regulatory Regimes, Climate Change Policy and Regulation, Social Policy, Legal Products, Legal Reform, Environmental Strategy, Legislation, Global Environment Facility, Energy Production and Transportation, Macro-Fiscal Policy, Public Finance Decentralization and Poverty Reduction, Economic Adjustment and Lending, Public Sector Economics, Technology Industry, Technology Innovation

Suggested Citation

Dominioni, Goran and Heine, Dirk and Heine, Dirk and Martinez Romera, Beatriz, Regional Carbon Pricing for International Maritime Transport: Challenges and Opportunities for Global Geographical Coverage (January 24, 2018). World Bank Policy Research Working Paper No. 8319, Available at SSRN: https://ssrn.com/abstract=3109079

Goran Dominioni (Contact Author)

Dublin City University- School of Law and Government ( email )

Ireland

Dirk Heine

Erasmus University Rotterdam (EUR) - Rotterdam Institute of Law and Economics ( email )

Burgemeester Oudlaan 50
PO box 1738
Rotterdam, 3000 DR
Netherlands

University of Hamburg - Institute of Law and Economics ( email )

Johnsallee 35
Hamburg, 20148
Germany

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

World Bank, Macroeconomics, Trade and Investment Global Practice ( email )

1818 H Street, NW
Washington, DC 20433
United States

Beatriz Martinez Romera

University of Copenhagen - Faculty of Law ( email )

Studiestraede 6
Studiestrade 6
Copenhagen, DK-1455
Denmark

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