DFID Aviation and Maritime

Aviation and shipping pose major challenges to reducing emissions. Market-based measures could address the impact of aviation and international shipping on the world’s climate in a cost-effective way. When implemented wisely, the impact on the poorest countries would be minimal.

Year: 2013 Past Project

  • Overview

    Countries with a higher dependency on tourism and trade are likely to experience greater economic impacts. Market-based measures raise the costs of aviation and maritime transport and so they raise the prices for passenger travel and exported and imported goods. Some of these countries are small island states that are also vulnerable to climate change impacts.

    Negative economic impacts on developing countries can be addressed effectively by a combination of measures. This study works to develop an evidence base for the impact of market based measures on developing countries. 

    The study focuses on 10 case study countries which, based on their economic structure, were anticipated to be negatively impacted by market-based measures: Mexico, China, India, Trinidad and Tobago, Togo, Kenya, Maldives, Samoa, Cook Islands and Chile.

  • Objectives

    The project:

    • Assessed the economic impacts of selected market-based measures on 10 selected case study countries and globally; and
    • Determined the possible, and most effective and efficient, tools to address or reduce these impacts.