Economic, Trade and Transport impact of
different technologies on the placing of
IMO 2050 CO2 cap.
Abstract: Greenhouse gases and specifically carbon emissions are drastically affecting our
planet. Measures must be applied to reduce emissions before it is too late. For this reason, the
International Maritime Organisation (IMO) has set new regulations to halve the CO2 emissions
by 2050. This research paper answers the following question: What is the economic, trade and
transport impact of the introducing different technological scenarios on CO2 emissions and
what extend do these scenarios become more compliant with the regulations of IMO 2050?This
study analyses the challenge that must be faced immediately and check the welfare effect on
the main economies. The research question was answered using the GSIM model, the best
methodology for a partial equilibrium approach. Considering different technological scenarios,
the results depict that the most viable option to reach the IMO 2050 goals, without any much
effect on welfare of main economies, is the use of alternative fuels, more precisely LNG,
hydrogen, biofuel, and wind. If the IMO 2050 goals are not reached, thus implementation of
pigovian tax is could be a hard option.
Author : Neeraj Gadkari
Course : MSc. in Maritime Economics and Logistics (MEL)
Subject : International Economics
Professor : Dr. Koen Berden
Date : 20/01/2021
different technologies on the placing of
IMO 2050 CO2 cap.
Abstract: Greenhouse gases and specifically carbon emissions are drastically affecting our
planet. Measures must be applied to reduce emissions before it is too late. For this reason, the
International Maritime Organisation (IMO) has set new regulations to halve the CO2 emissions
by 2050. This research paper answers the following question: What is the economic, trade and
transport impact of the introducing different technological scenarios on CO2 emissions and
what extend do these scenarios become more compliant with the regulations of IMO 2050?This
study analyses the challenge that must be faced immediately and check the welfare effect on
the main economies. The research question was answered using the GSIM model, the best
methodology for a partial equilibrium approach. Considering different technological scenarios,
the results depict that the most viable option to reach the IMO 2050 goals, without any much
effect on welfare of main economies, is the use of alternative fuels, more precisely LNG,
hydrogen, biofuel, and wind. If the IMO 2050 goals are not reached, thus implementation of
pigovian tax is could be a hard option.
Author : Neeraj Gadkari
Course : MSc. in Maritime Economics and Logistics (MEL)
Subject : International Economics
Professor : Dr. Koen Berden
Date : 20/01/2021
