Evaluating Economic Reasons for China’s Stance on Ship-Based Greenhouse Gas Reduction Negotiations

Greenhouse gas emissions from international shipping are an increasing concern of those interested in mitigating global climate change. Countries have not reached a consensus on ship-based greenhouse gas reduction strategies and on the responsibilities each country should take. In this paper, the economic reasons for China’s insistence that the regulatory regime of the International Maritime Organization specifically address the Kyoto axiom of “common but differentiated responsibility” is evaluated, and fundamental equations relating power, speed, energy consumption, and cost to evaluate the impact of emission reduction on a selected set of routes and vessel data are applied. The policy options that are under discussion regarding ship-based carbon dioxide (CO2) reduction and China’s viewpoint are reviewed, and economic justifications for China’s stance are discussed. Estimates indicate that ships flying the Chinese flag accounted for 3.4% of the approximately 35 million metric tons of CO2 emitted by container ships calling at U.S. ports in 2005, and ships carrying Chinese exports accounted for 17%. Further estimates suggest that China will pay approximately $238 to $298 million more for container ship services and international trade with the United States if all vessels are required to reduce ship-based CO2 emissions. The direct cost is equivalent to about 0.20% of the total value of goods carried by container ships to the United States from China, or an $11 increase per ton of cargo. For some low-value goods, this is about an 8% increase in terms of price per ton, decreasing the already thin profit margins of Chinese exporters. These results, discussed in the context of policy-based actions, may limit or affect the choice of policy instruments.

• Record URL:
  https://doi.org/10.3141/2166-01
• Summary URL:
  http://scholar.google.com/scholar_lookup?title=Evaluating+Economic+Reasons+for+China%e2%ac%22s+Stance+on+Ship-Based+Greenhouse+Gas+Reduction+Negotiations&author=H.+Wang&author=C.+Wang&publication_year=2010
• Availability:
  • Find a library where document is available. Order URL: http://www.trb.org/Main/Blurbs/Marine_Transportation_and_Port_Operations_2010_164361.aspx
• Authors:
  • Wang, Haifeng
  • Wang, Chengfeng
• Publication Date: 2010

Language

• English

Media Info

• Media Type: Print
• Features: Figures; Maps; References; Tables;
• Pagination: pp 1-9
• Monograph Title: Marine Transportation and Port Operations 2010
• Serial:
  • Transportation Research Record: Journal of the Transportation Research Board
  • Issue Number: 2166
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Carbon dioxide; Cargo ships; Climate change; Containerships; Economic factors; Environmental impacts; Greenhouse gases; Policy; Pollutants; Vessel operations; Water transportation
• Geographic Terms: China
• Subject Areas: Economics; Environment; Marine Transportation; Policy; I15: Environment;

Filing Info

• Accession Number: 01154284
• Record Type: Publication
• ISBN: 9780309142991
• Report/Paper Numbers: 10-3621
• Files: TRIS, TRB, ATRI
• Created Date: Apr 14 2010 7:14AM