EU Emissions Trading System's Impact on Maritime Industry: Opportunities and Challenges
Keywords:
EU ETS, carbon emissions, industries, shipping, carbon trading, sustainability, environmental policies, carbon reduction, emissions reduction
Abstract
This research delves deeply into the effects of the European Union Emissions Trading System (EU ETS) on several businesses and looks at possible ramifications for the maritime industry. Through the synthesis of empirical experiences from other sectors, this research seeks to provide complex insights that anticipate opportunities and obstacles in the maritime transportation industry's pursuit of strict carbon reduction targets. This article provides a comprehensive knowledge of the EU ETS's many effects on sectors through in-depth analysis, highlighting the system's wider significance for environmental stewardship and sustainable practises.
References
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Löschel, A., Lutz, B. J., & Managi, S. (2019). The impacts of the EU ETS on efficiency and economic performance–An empirical analyses for German manufacturing firms. Resource and Energy Economics, 56, 71–95.
Mandaroux, R., Schindelhauer, K., & Mama, H. B. (2023). How to reinforce the effectiveness of the EU emissions trading system in stimulating low-carbon technological change? Taking stock and future directions. Energy Policy, 181, 113697.
Maxwell, J. A. (2021). Why qualitative methods are necessary for generalization. Qualitative Psychology, 8(1), 111.
Mehrad, A., & Zangeneh, M. H. T. (2019). Comparison between qualitative and quantitative research approaches: Social sciences. International Journal For Research In Educational Studies, Iran, 5(7), 1–7.
Panait, D. (2021). Extending the Scope of the EU ETS by Including Road Transport and Shipping. Ovidius University Annals, Economic Sciences Series, 21(2), 436–443.
Pietzcker, R. C., Osorio, S., & Rodrigues, R. (2021). Tightening EU ETS targets in line with the European Green Deal: Impacts on the decarbonization of the EU power sector. Applied Energy, 293, 116914.
Rudnik, K., Hnydiuk-Stefan, A., Li, Z., & Ma, Z. (2023). Short-term modeling of carbon price based on fuel and energy determinants in EU ETS. Journal of Cleaner Production, 417, 137970.
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Wei, Y., Gong, P., Zhang, J., & Wang, L. (2021). Exploring public opinions on climate change policy in" Big Data Era"—A case study of the European Union Emission Trading System (EU-ETS) based on Twitter. Energy Policy, 158, 112559.
Wu, M., Li, K. X., Xiao, Y., & Yuen, K. F. (2022). Carbon Emission Trading Scheme in the shipping sector: Drivers, challenges, and impacts. Marine Policy, 138, 104989.
Zang, J., Wan, L., Li, Z., Wang, C., & Wang, S. (2020). Does emission trading scheme have spillover effect on industrial structure upgrading? Evidence from the EU based on a PSM-DID approach. Environmental Science and Pollution Research, 27(11), 12345–12357. https://doi.org/10.1007/s11356-020-07818-0
Cariou, P., Lindstad, E., & Jia, H. (2021). The impact of an EU maritime emissions trading system on oil trades. Transportation Research Part D: Transport and Environment, 99, 102992.
Christodoulou, A., Dalaklis, D., Ölçer, A. I., & Ghaforian Masodzadeh, P. (2021). Inclusion of shipping in the EU-ETS: Assessing the direct costs for the maritime sector using the MRV data. Energies, 14(13), 3915.
Cludius, J., de Bruyn, S., Schumacher, K., & Vergeer, R. (2020). Ex-post investigation of cost pass-through in the EU ETS-an analysis for six industry sectors. Energy Economics, 91, 104883.
Cullinane, K., & Yang, J. (2022). Evaluating the costs of decarbonizing the shipping industry: A review of the literature. Journal of Marine Science and Engineering, 10(7), 946.
Evans, S., & Wu, A. Z. (2021). What drives cooperation in carbon markets? Lessons from decision-makers in the Australia-EU ETS linking negotiations. Climate Policy, 21(8), 1086–1098. https://doi.org/10.1080/14693062.2021.1953436
García, A., García-Álvarez, M. T., & Moreno, B. (2021). The Impact of EU Allowance Prices on the Stock Market Indices of the European Power Industries: Evidence from the Ongoing EU ETS Phase III. Organization & Environment, 34(3), 459–478. https://doi.org/10.1177/1086026620924820
Gonçalves, J., & Costa, M. L. (2022). The political influence of ecological economics in the European Union applied to the cap-and-trade policy. Ecological Economics, 195, 107352.
Hughes, E. (2020). Implications of application of the EU Emissions Trading System (ETS) to international shipping, and potential benefits of alternative Market-Based Measures (MBMs). ECSA. https://www.maritimecyprus.com/wp-content/uploads/2020/09/ECSA-ICS-2020-Study-on-EU-ETS.pdf
Jeong, B., Kim, M., & Park, C. (2022). Decarbonization Trend in International Shipping Sector. Journal of International Maritime Safety, Environmental Affairs, and Shipping, 6(4), 236–243. https://doi.org/10.1080/25725084.2022.2156155
Joltreau, E., & Sommerfeld, K. (2019). Why does emissions trading under the EU Emissions Trading System (ETS) not affect firms’ competitiveness? Empirical findings from the literature. Climate Policy, 19(4), 453–471. https://doi.org/10.1080/14693062.2018.1502145
Lagouvardou, S., & Psaraftis, H. N. (2022). Implications of the EU Emissions Trading System (ETS) on European container routes: A carbon leakage case study. Maritime Transport Research, 3, 100059.
Lazzini, S., Occhipinti, Z., Parenti, A., & Verona, R. (2021). Disentangling economic crisis effects from environmental regulation effects: Implications for sustainable development. Business Strategy and the Environment, 30(5), 2332–2353. https://doi.org/10.1002/bse.2749
Löschel, A., Lutz, B. J., & Managi, S. (2019). The impacts of the EU ETS on efficiency and economic performance–An empirical analyses for German manufacturing firms. Resource and Energy Economics, 56, 71–95.
Mandaroux, R., Schindelhauer, K., & Mama, H. B. (2023). How to reinforce the effectiveness of the EU emissions trading system in stimulating low-carbon technological change? Taking stock and future directions. Energy Policy, 181, 113697.
Maxwell, J. A. (2021). Why qualitative methods are necessary for generalization. Qualitative Psychology, 8(1), 111.
Mehrad, A., & Zangeneh, M. H. T. (2019). Comparison between qualitative and quantitative research approaches: Social sciences. International Journal For Research In Educational Studies, Iran, 5(7), 1–7.
Panait, D. (2021). Extending the Scope of the EU ETS by Including Road Transport and Shipping. Ovidius University Annals, Economic Sciences Series, 21(2), 436–443.
Pietzcker, R. C., Osorio, S., & Rodrigues, R. (2021). Tightening EU ETS targets in line with the European Green Deal: Impacts on the decarbonization of the EU power sector. Applied Energy, 293, 116914.
Rudnik, K., Hnydiuk-Stefan, A., Li, Z., & Ma, Z. (2023). Short-term modeling of carbon price based on fuel and energy determinants in EU ETS. Journal of Cleaner Production, 417, 137970.
Sato, S. Y. (2022). EU’s Carbon Border Adjustment Mechanism: Will It Achieve Its Objective (s)? Journal of World Trade, 56(3). https://kluwerlawonline.com/journalarticle/Journal+of+World+Trade/56.7/TRAD2022015
Von Wattenwyl, I. (n.d.). Inclusion of the shipping sector in the European Carbon Emissions Trading System (ETS): Impacts on Panamax (4TC) and Capesize (5TC) freight rates and their time-varying risk model. Retrieved December 6, 2023, from https://access.archive-ouverte.unige.ch/access/metadata/55204b89-d0e5-4841-94c2-0a380a0ae94a/download
Wei, Y., Gong, P., Zhang, J., & Wang, L. (2021). Exploring public opinions on climate change policy in" Big Data Era"—A case study of the European Union Emission Trading System (EU-ETS) based on Twitter. Energy Policy, 158, 112559.
Wu, M., Li, K. X., Xiao, Y., & Yuen, K. F. (2022). Carbon Emission Trading Scheme in the shipping sector: Drivers, challenges, and impacts. Marine Policy, 138, 104989.
Zang, J., Wan, L., Li, Z., Wang, C., & Wang, S. (2020). Does emission trading scheme have spillover effect on industrial structure upgrading? Evidence from the EU based on a PSM-DID approach. Environmental Science and Pollution Research, 27(11), 12345–12357. https://doi.org/10.1007/s11356-020-07818-0
Published
2023-12-30
How to Cite
Adamantidis, V. (2023). EU Emissions Trading System’s Impact on Maritime Industry: Opportunities and Challenges. European Journal of Science, Innovation and Technology, 3(6), 391-404. Retrieved from https://ejsit-journal.com/index.php/ejsit/article/view/345
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Copyright (c) 2023 Vasileios Adamantidis
This work is licensed under a Creative Commons Attribution 4.0 International License.
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