International shipping and aviation account for approximately 5% of annual anthropogenic CO2 emissions and this is projected to increase in the coming decades. To address these emissions, market-based measures (MBMs) have been proposed to the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO) by some of their Member States.

As MBMs raise the costs of aviation and maritime transport, they impact economies due to increased prices for passenger travel and exported and imported goods. The main objectives of the study were to:

(i) Assess the economic impacts of a number of MBMs on selected case study countries and globally; and

(ii) Determine the possible, and most effective and efficient tools to address or reduce these impacts, where they are deemed undesirable.

The study focuses on a selection of case study countries which, based on their economic structure, were anticipated to be negatively impacted by MBMs for international shipping and aviation.