Unveiling the nexus between marine energy consumption, seaborne trade, and greenhouse gases emissions from international shipping

As a result of the globalization of production processes and the expansion of international trade, both water-based trade and the use of marine energy are expanding quickly. Marine energy consumption is rapidly increasing as a result of globalization. Despite being ignored for many decades, reducing marine emissions is today a top priority among European nations. Thus, the present study contributes to the existing literature by investigating the nexus between marine energy consumption, seaborne trade, and GHG emissions by employing time series data for eight Northern European nations from 2005 to 2017. The extended EKC model and three proxy variables for seaborne trade (i.e., container throughput, liner shipping connectivity index, and trade openness) are used to investigate the nexus between these variables. FMOLS and DOLS methods have been employed to control the problems of endogeneity and serial correlation. Only in Denmark, Norway, and Sweden did the data corroborate an inverted U-shaped relationship (the EKC curve) between maritime GHG emissions and economic development. The increase in energy utilization across all nations directly increased marine GHG emissions; however, the adverse effect of energy consumption on the environment is severe in Denmark, Norway, and Sweden. Container throughput, linear shipping connectivity index, and trade openness exhibit a positive impact on marine GHG emissions. The impact of seaborne proxy variables is severe in Denmark and Sweden. In order to have a robust assessment and to confirm the validity and uniformity of the results, Driscoll-Kraay standard errors (DKSE) and robust standard error (RSE) regression techniques are being employed.

Automated summary

Due to globalization and international trade, water-based trade and marine energy consumption are rapidly increasing. Reducing marine emissions has become a top priority in European nations. This study investigates the relationship between marine energy consumption, seaborne trade, and GHG emissions in Northern European nations from 2005 to 2017 using an extended EKC model and proxy variables for seaborne trade. The findings show an inverted U-shaped relationship between maritime GHG emissions and economic development in Denmark, Norway, and Sweden. Energy consumption directly increases marine GHG emissions, with the most severe impact in Denmark, Norway, and Sweden. Container throughput, liner shipping connectivity index, and trade openness have a positive impact on marine GHG emissions, particularly in Denmark and Sweden. Driscoll-Kraay standard errors and robust standard error techniques are employed to ensure the validity and consistency of the results.