Carbon Taxation for International Maritime Fuels: Assessing the Options
IMF Working Papers, September 11, 2018
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Bibliographic details
- Authors: Ian W.H. Parry, Dirk Heine, Kelley Kizzier, Tristan Smith
- Published: September 11, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484374559.001
Overview
- The International Maritime Organization (IMO) announced in April 2018 a target of cutting greenhouse gas (GHG) emissions from the sector by 50 percent below 2008 levels by 2050.
- This paper seeks to inform dialogue about the possibility of a carbon tax as a key element of GHG mitigation policy for international maritime transport.
- The paper discusses the case for the tax over alternative mitigation instruments, options for the practical design issues, and then presents estimates of the impacts of carbon taxation and other instruments from an analytical model of the maritime sector.
Objectives and Scope
- Assess the case for a carbon tax for international maritime fuels relative to alternative mitigation instruments.
- Examine practical design options for a carbon tax applicable to the international maritime sector.
- Provide quantitative estimates of impacts of carbon taxation and alternative instruments using an analytical model of the maritime sector.
Methodology and Analytical Approach
- Uses an analytical model of the maritime sector to estimate impacts of carbon taxation and other instruments.
- Presents comparative analysis of instruments (carbon tax versus alternative mitigation instruments) and discusses design choices and implementation issues.
Key Themes and Topics Covered
- Carbon tax as a mitigation instrument for international maritime transport.
- Design issues for carbon taxation of international maritime fuels.
- Comparisons of carbon taxation with alternative mitigation instruments.
- Estimates of impacts from an analytical maritime-sector model.
- Consideration of revenue use and revenue-related schemes (referenced in keywords): revenue use, revenue-limiting tax scheme, revenue-neutral feebate, revenue-recycling benefit.
Findings, Projections, and Analytical Outputs (as described in the source)
- The paper presents estimates of the impacts of carbon taxation and other instruments from an analytical model of the maritime sector.
- The IMO target framing: cut GHG emissions by 50 percent below 2008 levels by 2050.
Policy Discussion and Design Considerations (as described in the source)
- Makes the case for a carbon tax over alternative mitigation instruments (detailed arguments are presented in the paper).
- Discusses practical design issues for implementing a carbon tax on international maritime fuels.
- Considers revenue-related options and implications for shipping costs (topics indicated in keywords).
Subjects and Keywords
- Subjects: Carbon tax, Environment, Expenditure, Fuel prices, Greenhouse gas emissions, Prices, Public expenditure review, Revenue administration, Taxes
- Keywords: carbon tax, climate mitigation, cost, design issues, emissions price, establishment, Fuel prices, Global, Greenhouse gas emissions, International Marime Organization, Maritime emissions, one-off price increase, Public expenditure review, revenue, revenue use, revenue-limiting tax scheme, revenue-neutral feebate, revenue-recycling benefit, shipping cost, spreadsheet model, WP
IMF Working Paper: "Carbon Taxation for International Maritime Fuels: Assessing the Options", Ian W.H. Parry, Dirk Heine, Kelley Kizzier, Tristan Smith, September 11, 2018.
Content in this bundle
- Carbon Taxation for International Maritime Fuels: Assessing the Options, WP/18/203, September 2018