Kiel Working Papers, Kiel Institute for World Economics
No 1813:
The Potential Contribution of the Shipping Sector to an Efficient Reduction of Global Carbon Dioxide Emissions
Nadine Heitmann and Sonja Peterson
Abstract: In this paper, we analyze how much the shipping sector
could contribute to global CO2 emission reductions from an efficiency point
of view. To do this, a marginal abatement cost curve (MACC) for the
shipping sector is generated that can be combined with a MACC for
conventional CO2 abatement in the production and consumption sectors around
the world. These two MACCs are used to assess the following as regards the
various global reduction targets: (a) what the maximum global cost savings
would be that could be achieved by abating emissions in the shipping
sector, (b) how much the shipping sector could contribute to abating
emissions cost efficiently, and (c) what the potential additional costs of
implementing a separate solution for the shipping sector would be. The
focus is on the year 2020. We find that the shipping sector could always
contribute to efficient global emission reductions and thus could always
achieve global cost savings, but also that the size of the contribution and
the size of cost savings depend heavily on the MACC case assumed, i.e., on
how the existence of negative abatement costs is treated in a MACC, and on
the reduction potentials and costs of measures assumed
Keywords: climate change, shipping sector, CO2 emissions, marginal abatement cost curve; (follow links to similar papers)
JEL-Codes: Q52,; Q54,; Q58; (follow links to similar papers)
36 pages, December 2012
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