Co-authored with Nektarios A. Michail and Prodromos Tsinaslanidis. Published in Research in Transportation Economics, Volume 116, 2026, 101726.

Published Link:

https://doi.org/10.1016/j.retrec.2026.101726

This study examines whether carbon pricing in maritime transport is passed through to freight rates and euro area inflation. Using a Bayesian VAR and monthly data from January 2023 to August 2024, we find no statistically significant increase in either freight rates or inflation following higher CO₂ allowance prices. Instead, a slight decline in oil prices and a modest increase in shipowners’ earnings suggest that, in the short run, a substantial share of the regulatory cost is absorbed within the sector — the “Silent Absorber” hypothesis.