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Transport, trade and climate change: carbon footprints, fuel subsidies and market-based measures

The objective of this paper is to examine the viability and potential effects of different actions that Germany and the European Union (EU) can take to curb the growth of GHG emissions from the international transport sector. It analyzes different options that policy makers have available to reduce transport induced emissions. In doing so, this paper takes the impacts on trade, especially for developing countries, into account. The overarching question that is reverberates throughout this paper is: what are the advantages and disadvantages of different measures that Germany and the EU can take to limit emissions from trade-related transport?