Impact Assessment of Eco-Friendly Cooling System Implementation on Sea Transportation: A GTAP-E-Power Model Application

Abstract

AbstractClimate change and global warming have significantly threatened food security and the global supply chain. As the trade volume of bulk commodity grains has been growing steadily, ensuring quality while minimizing losses during long-distance shipping between warm and cold seawater has become a critical issue. An evidence-based approach to provide quantified implications is needed to illustrate a roadmap toward a net-zero-carbon society. This study applied the GTAP-E-Power model to examine the economic and welfare impacts of eco-friendly cooling system implementation on sea transportation in Japan, Australia, and New Zealand. By creating scenarios of Japan’s technology change calibrated from SPIAS-e and capital-use subsidy on sectors of electronics, solar power, and sea transportation as cooling system implementation, the simulation results showed a GDP growth of 0.09% in Japan and 0.11% in Australia and New Zealand. Moreover, Japan's welfare could improve by USD 4,219 million, while greenhouse gas emissions might be reduced to 8.4 million tons, equivalent to 0.9% of the total emission of Japan’s sea transportation sector.