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# XII.e International shipping Costs

Showing just the changes made in the edit by Daniel Lord at 2011-11-22 22:10:47 UTC

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## 2011-08-09

 ```Title: XII.e International shipping Costs Content: h1 Costs summary h2 Technology costs Click here for International Shipping cost data h1 Costs Methodology h2 Methodology used The user decides which trajectory is used which defines the levels of the technologies. We only have point estimates for the incremental costs for international shipping from a recent report[AMEC Environment & Infrastructure UK Limited (2011) Costs and Benefits of Abatement Options for Greenhouse Gas Emissions from Ships Arriving at and Departing from Ports in the UK]. We have used these as our "default" costs. As we do not have total costs data, we have assumed that costs at level 1 are zero, and applied the incremental costs for levels 2, 3 and 4. We have artificially generated a high/low range around these point estimates such that the point estimates are the 35th centile. For example, see Table 1 (below) for costs at level 3. (For information on why we selected to use a 35th centile, please see the methodology paper on the wiki.) Therefore an important caveat to the international shipping costs are: * Users should be aware that whereas the Calculator includes total costs for all other technologies, for international shipping we only have incremental costs. * Therefore when looking at total costs of pathways in the web tool, be aware that this will be a slight underestimate because it will not reflect the full international shipping costs. * However, note that this omission of costs ceases to be a problem if users look at the incremental cost of one pathway over and above any pathway in which international shipping is set at level 1; in this instance, it will be a true reflection of incremental costs. Table 1. "Total" costs in 2050 as used in the Calculator | | International shipping - level 3 (£m/MtCO2) | | Low | 61 | | Default (35th centile) | 82 | | High | 122 | h1 Questions to Stakeholders 1) Are today’s international shipping technology costs accurately reflected? 2) Are any of the technology costs out of date, do you have any new estimates to add? 3) The model uses high and low input cost assumptions. What is the evidence that these remain constant, rise or fall over time for the shipping sector? h1 Contacts Lead and sign-off 2050 Costs team lead - Daniel Lord and Sophie Hartfield Category: sector by sector cost assumptions User: Daniel Lord Picture updated at: Signed off by: Signed off at:``` ```Title: XII.e International shipping Costs Content: h1 Costs summary h2 Technology costs Click here for International Shipping cost data h1 Costs Methodology h2 Methodology used The user decides which trajectory is used which defines the levels of the technologies. We only have point estimates for the incremental costs for international shipping from the results of a study, commissioned by the Department for Transport, which estimated the potential for different technical and operational measures to reduce the UK’s CO2 emissions from shipping, and the cost-effectiveness of these measures[AMEC Environment & Infrastructure UK Limited (2011) Costs and Benefits of Abatement Options for Greenhouse Gas Emissions from Ships Arriving at and Departing from Ports in the UK]. We have used these as our "default" costs. As we do not have total costs data, we have assumed that costs at level 1 are zero, and applied the incremental costs for levels 2, 3 and 4. We have artificially generated a high/low range around these point estimates such that the point estimates are the 35th centile. For example, see Table 1 (below) for costs at level 3. (For information on why we selected to use a 35th centile, please see the methodology paper on the wiki.) Therefore an important caveat to the international shipping costs are: * Users should be aware that whereas the Calculator includes total costs for all other technologies, for international shipping we only have incremental costs. * Therefore when looking at total costs of pathways in the web tool, be aware that this will be a slight underestimate because it will not reflect the full international shipping costs. * However, note that this omission of costs ceases to be a problem if users look at the incremental cost of one pathway over and above any pathway in which international shipping is set at level 1; in this instance, it will be a true reflection of incremental costs. Table 1. "Total" costs in 2050 as used in the Calculator | | International shipping - level 3 (£m/MtCO2) | | Low | 61 | | Default (35th centile) | 82 | | High | 122 | h1 Questions to Stakeholders 1) Are today’s international shipping technology costs accurately reflected? 2) Are any of the technology costs out of date, do you have any new estimates to add? 3) The model uses high and low input cost assumptions. What is the evidence that these remain constant, rise or fall over time for the shipping sector? h1 Contacts Lead and sign-off 2050 Costs team lead - Daniel Lord and Sophie Hartfield Category: sector by sector cost assumptions User: Daniel Lord Picture updated at: Signed off by: Signed off at:```