Sanctions or sea ice: Costs of closing the Northern Sea Route

Michael A. Goldstein, Amanda H. Lynch, Xueke Li and Charles H. Norchi

Finance Research Letters, 2022, vol. 50, issue C

Abstract: Either sea ice or recent sanctions on Russia could close or shorten the use of the Northern Sea Route (NSR). Using 16 climate realizations and shipping routes to estimate the value of an NSR transit, we find that closure costs could be as high as $3.3 billion, with possible overall losses as high as $10 billion. Ultimately, sanctions are as expensive as sea ice. The estimates used to produce these findings may be used by other researchers to assess possible future cost savings as climate change continues to affect global transportation.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322004536
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004536

DOI: 10.1016/j.frl.2022.103257

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().