Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route
A consequence of melting Arctic ice caps is the commercial viability of the Northern Sea Route, connecting North-East Asia with North-Western Europe. This will represent a sizeable reduction in shipping distances and a decrease in the average transportation days by around one-third compared to the c...
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ftagecon:oai:ageconsearch.umn.edu:332392 2024-09-15T18:25:56+00:00 Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route Francois, Joseph F. Rojas-Romagosa, Hugo 2023-03-03T21:35:21Z http://ageconsearch.umn.edu/record/332392 https://ageconsearch.umn.edu/record/332392/files/7307.pdf eng eng https://ageconsearch.umn.edu/record/332392/files/7307.pdf http://ageconsearch.umn.edu/record/332392 http://ageconsearch.umn.edu/record/332392 Text 2023 ftagecon 2024-07-05T14:25:35Z A consequence of melting Arctic ice caps is the commercial viability of the Northern Sea Route, connecting North-East Asia with North-Western Europe. This will represent a sizeable reduction in shipping distances and a decrease in the average transportation days by around one-third compared to the currently used Southern Sea Route. We examine the economic impact of the opening of the Northern Sea Route. This includes a remarkable shift of bilateral trade flows between Asia and Europe, diversion of trade within Europe, heavy shipping traffic in the Arctic, and a substantial drop in traffic through Suez. These global trade changes are reflected in real income effects for the countries involved and moderate labour displacement for specific industries. The estimated redirection of trade has also major geopolitical implications: the reorganisation of global supply chains within Europe and between Europe and Asia, and the highlighted political interest and environmental pressure on the Arctic. Text Northern Sea Route AgEcon Search - Research in Agricultural & Applied Economics |
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Open Polar |
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AgEcon Search - Research in Agricultural & Applied Economics |
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ftagecon |
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English |
description |
A consequence of melting Arctic ice caps is the commercial viability of the Northern Sea Route, connecting North-East Asia with North-Western Europe. This will represent a sizeable reduction in shipping distances and a decrease in the average transportation days by around one-third compared to the currently used Southern Sea Route. We examine the economic impact of the opening of the Northern Sea Route. This includes a remarkable shift of bilateral trade flows between Asia and Europe, diversion of trade within Europe, heavy shipping traffic in the Arctic, and a substantial drop in traffic through Suez. These global trade changes are reflected in real income effects for the countries involved and moderate labour displacement for specific industries. The estimated redirection of trade has also major geopolitical implications: the reorganisation of global supply chains within Europe and between Europe and Asia, and the highlighted political interest and environmental pressure on the Arctic. |
format |
Text |
author |
Francois, Joseph F. Rojas-Romagosa, Hugo |
spellingShingle |
Francois, Joseph F. Rojas-Romagosa, Hugo Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route |
author_facet |
Francois, Joseph F. Rojas-Romagosa, Hugo |
author_sort |
Francois, Joseph F. |
title |
Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route |
title_short |
Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route |
title_full |
Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route |
title_fullStr |
Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route |
title_full_unstemmed |
Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route |
title_sort |
melting ice caps and the economic impact of opening the northern sea route |
publishDate |
2023 |
url |
http://ageconsearch.umn.edu/record/332392 https://ageconsearch.umn.edu/record/332392/files/7307.pdf |
genre |
Northern Sea Route |
genre_facet |
Northern Sea Route |
op_source |
http://ageconsearch.umn.edu/record/332392 |
op_relation |
https://ageconsearch.umn.edu/record/332392/files/7307.pdf http://ageconsearch.umn.edu/record/332392 |
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1810466408338817024 |