Highlights Propose a novel approach to reduce sulphur emissions, which can be trade enhancing. Investment in supply chain performance can reduce emissions via indirect mechanisms. Emission targets achieved by promoting trade and using larger vessels to move goods. A combination of an augmented gravity equation and econometric models are applied. The proposed indirect mechanism is complementary to the IMO sulphur emissions cap.
Abstract This paper proposes a novel way to reduce sulphur emissions in international transport, by focusing on the role of logistics improvements and vessel size. Using an augmented gravity model and advanced econometric methods, weassess the impact of logistics performance on bilateral trade, and then evaluate the link between bilateral trade and vessel size. The estimation results are translated in terms of sulphur emission reduction. The models are estimated on an original panel data set composed of worldwide bilateral trade of manufactured goods, several characteristics of container vessels and maritime routes, and indicators of logistics performance. We show that investing in logistics improvementscangenerate trade growth, and reduce sulphur emissions per unit of goodstransported by promoting the utilization of larger and more fuel-efficient vessels. The proposed indirect mechanism is complementary to the current sulphuremissions cap, and allowsdecision-makers to reduce emissions which can be trade enhancing.
Reducing emissions in international transport: A supply chain perspective
2021-01-01
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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