Connectedness between climate variables and maritime markets: Time-varying dynamics and sustainability perspective
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View abstract on PubMed
Summary
This summary is machine-generated.Maritime markets, especially tanker sectors, are sensitive to climate change impacts like sea surface temperatures. Market integration increases during crises, highlighting the need for sustainability strategies aligned with the IMO 2023 GHG Strategy.
Area Of Science
- Environmental Economics
- Climate Science
- Maritime Logistics
Background
- Global temperature anomalies and sea surface temperatures significantly influence economic sectors.
- Maritime markets, crucial for global trade, face increasing pressure from climate variability and environmental regulations.
- Understanding the interconnectedness of maritime freight markets with climate factors is vital for sustainable development.
Purpose Of The Study
- To investigate the impact of sea surface temperatures and global temperature anomalies on maritime markets.
- To analyze the connectedness between maritime freight markets, carbon emissions, and climate variability.
- To propose climate adaptation strategies for the maritime sector in alignment with the IMO 2023 GHG Strategy.
Main Methods
- Utilized the Time-Varying Parameter Vector Autoregression (TVP-VAR) based Connectedness Decomposition Approach.
- Analyzed the sensitivity of tanker markets (Baltic Dirty Tanker Index - BDTI, Baltic Clean Tanker Index - BCTI) and dry bulk markets.
- Assessed the Total Connectedness Index (TCI) during periods of global economic crises and pandemics.
Main Results
- Tanker markets (BDTI, BCTI) exhibit higher sensitivity to climate variables compared to dry bulk markets.
- Market integration, measured by TCI, intensifies during global economic crises and pandemic events.
- A significant pairwise relationship exists between freight markets, carbon emissions, and climate variability.
Conclusions
- Maritime markets play a critical role in environmental sustainability efforts.
- The study provides a foundation for developing short-, medium-, and long-term sustainability strategies for the maritime sector.
- Enhanced adaptation to climate policies is essential for the resilience and future of maritime trade.
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