Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route
One consequence of melting Arctic ice caps is the commercial viability of the Northern Sea Route, connecting East Asia with Europe. This represents a sizeable reduction in shipping distances and average transportation days compared to the conventional Southern Sea Route. We examine the economic impa...
Published in: | The Economic Journal |
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Format: | Article in Journal/Newspaper |
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Online Access: | https://doi.org/10.1111/ecoj.12460 |
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ftrepec:oai:RePEc:wly:econjl:v:128:y:2018:i:610:p:1095-1127 2023-05-15T14:40:46+02:00 Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route Eddy Bekkers Joseph F. Francois Hugo Rojas†Romagosa https://doi.org/10.1111/ecoj.12460 unknown https://doi.org/10.1111/ecoj.12460 article ftrepec https://doi.org/10.1111/ecoj.12460 2020-12-04T13:31:59Z One consequence of melting Arctic ice caps is the commercial viability of the Northern Sea Route, connecting East Asia with Europe. This represents a sizeable reduction in shipping distances and average transportation days compared to the conventional Southern Sea Route. We examine the economic impact of opening this route in a multi†sector Eaton–Kortum model with intermediate linkages. We find remarkable shifts in trade flows between Asia and Europe, diversion of trade within Europe, heavy shipping traffic in the Arctic and a substantial drop in Suez traffic. Projected shifts in trade also imply substantial pressure on an already threatened Arctic ecosystem. Article in Journal/Newspaper Arctic Northern Sea Route RePEc (Research Papers in Economics) Arctic The Economic Journal 128 610 1095 1127 |
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Open Polar |
collection |
RePEc (Research Papers in Economics) |
op_collection_id |
ftrepec |
language |
unknown |
description |
One consequence of melting Arctic ice caps is the commercial viability of the Northern Sea Route, connecting East Asia with Europe. This represents a sizeable reduction in shipping distances and average transportation days compared to the conventional Southern Sea Route. We examine the economic impact of opening this route in a multi†sector Eaton–Kortum model with intermediate linkages. We find remarkable shifts in trade flows between Asia and Europe, diversion of trade within Europe, heavy shipping traffic in the Arctic and a substantial drop in Suez traffic. Projected shifts in trade also imply substantial pressure on an already threatened Arctic ecosystem. |
format |
Article in Journal/Newspaper |
author |
Eddy Bekkers Joseph F. Francois Hugo Rojas†Romagosa |
spellingShingle |
Eddy Bekkers Joseph F. Francois Hugo Rojas†Romagosa Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route |
author_facet |
Eddy Bekkers Joseph F. Francois Hugo Rojas†Romagosa |
author_sort |
Eddy Bekkers |
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 |
url |
https://doi.org/10.1111/ecoj.12460 |
geographic |
Arctic |
geographic_facet |
Arctic |
genre |
Arctic Northern Sea Route |
genre_facet |
Arctic Northern Sea Route |
op_relation |
https://doi.org/10.1111/ecoj.12460 |
op_doi |
https://doi.org/10.1111/ecoj.12460 |
container_title |
The Economic Journal |
container_volume |
128 |
container_issue |
610 |
container_start_page |
1095 |
op_container_end_page |
1127 |
_version_ |
1766312647871954944 |