The external cost of speed at sea: An analysis based on selected short sea shipping routes

Abstract

According to the mid-term review of the EU White Paper on Transport, Short Sea Shipping (SSS) is expected to grow at a rate of 59% (metric tonnes) between 2000 and 2020. If we consider that the overall expected increase in both freight exchanges and volume is 50%, sea transport is one of the most feasible alternatives to reduce traffic congestion on European roads. Maritime transportation may compete with road transport as far as certain traffics are concerned, but only when assuming external costs. This paper analyzes several intermodal transport chains involving a sea leg by comparing the effect of pollutant emissions from different ship types and road transport in terms of potential external cost savings. The translation of these emissions into environmental costs shows, for certain conditions, savings in the case of sea transport that would justify the use of an environmental bonus to promote the sea option.

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