Internalization of external and infrastructure costs related to maritime transport in Sweden

The use of maritime transport is associated with external costs such as those related to greenhouse gas emissions and air pollution. If corrective taxes, fees or regulations are levied on the production services, these become internal decision-makers will take into account full social cost transport. Shipping subject less incentive-based regulation than e.g. road transport, but Sweden represents a relatively unique regulatory case its national system fairway dues, which differentiated according environmental performance ships. central question posed in this paper whether Sweden's internalizing policy measures proportion societal generated by traffic Swedish waters. Using dataset comprising all vessel movements territorial waters during year, we estimate marginal infrastructure find that, depending set unit values applied, degree internalization ranges between around 53% 90%. We also evaluate effects recent re-appraisal CO2 official guidelines for benefit analysis show that under new recommendation significantly lower: 23–28%. Because varies different shipping segments, uniform increase charges currently place not recommended. Instead, highlight other, more appropriate instruments may be needed.