The case study

In this case study a special focus will be given to the maritime oil transport in the Mediterranean sea, which represents about 70-80% of all European oil imports and about 80-90% of European oil imports destined to the power sector. These ratios are expected to rise over time due to the increased reliance on Gulf countries for European oil supply. The environmental sensitivity of the Mediterranean Sea to maritime oil transport can be assessed considering that a major oil spill occurring in the Mediterranean sea could have catastrophic effects, due to the sea’s peculiar closeness and limited water exchange. Furthermore, the Mediterranean sea coastal zone is populated by some 81 million people, expected to increase to as many as 170 million by 2025. Due to the region's mild climate and historical background, the annual number of tourists is estimated to reach 260 million by 2025.

The case study will test market based instruments, e.g. compensation schemes, port tariffs, fees, together the possibility of transferring part of the maritime oil transport to a pipeline transport scheme (i.e. direct submarine oil pipelines from North Africa to Europe, land pipelines avoiding maritime shipment through very critical passages like the Bosphorus, Arabian-Persian Gulf to Europe oil pipeline scheme, etc.). Existent economic incentives for reducing environmental impacts of ships in Mediterranean ports (e.g. reduction on port dues or tariffs for services) will be reviewed and, based on data availability, assessed in their effectiveness. The viability of such schemes will be assessed and transport costs will be analysed for the alternative options. As far as transport cost comparison is concerned, both the financial costs as well as the social external costs will be assessed.
As far as data availability is concerned, this case study will largely rely on the results of the currently on-going NEEDS Integrated Project (New Energy Externalities Development for Sustainability – www.needs-project.org), which features a Research Stream specifically dedicated to the externalities associated to the transport of energy, and, within that, specific Workpackes dealing with oil transport across the Mediterranean Sea.