| Research Activities |
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| Impact of the Fit for 55 package on passenger shipping and the island economy of Greece |
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Category:
Microeconomic Analysis
SubCategory:
Others
Date: 14/04/2022 |
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| The study scope includes the assessment of the effects of the "Fit for 55" package on the operation of domestic passenger shipping and by extension to the economy of the island regions of the country. In particular, the study highlights the proposed regulatory changes and their effects on passenger shipping operation, quantifies their impact on operating costs, ticket prices, traffic and the sector’s economic contribution, and examines the available options to mitigate these effects.
According to the study, the implementation of the new climate policies proposed by the European Commission (Fit for 55 package) is estimated to increase the operation costs of domestic passenger shipping by EUR 207 million in 2026 (compared to a non-implementation scenario), if no appropriate adjustment measures are taken. This cost burden can lead to an increase in ticket prices by around 30% and a reduction in passenger traffic by 28% in the same year. The reduced activity of the sector and the lower number of visitors to the islands of the country can lead to a reduction of GDP by more than EUR 900 million in 2026, while in terms of employment the loss of jobs is estimated at 29,000 jobs in the Greek economy (island regions and mainland).
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