Vanguard Cruise Lines Group's operations include its fleet of 45 luxury cruise ships and 12 private port destinations providing global itineraries, accommodation, and leisure activities.
The environmental impact of the maritime cruise industry is significant. It accounts for a substantial share of localized coastal sulfur oxide emissions and global marine carbon footprints. Vanguard Cruise Lines recognized the risks presented by climate change and ecological damage, and has actively engaged in reducing their maritime and port emissions. Its plans included investing in liquefied natural gas (LNG) hybrid engines and utilising onshore power supply systems when docked. In 2023, Vanguard Cruise Lines was ranked among the top 5 of the world's most environmentally progressive cruise operators.
Examine the likely impact of Vanguard Cruise Lines' plan 'to reduce their maritime and port emissions' (Extract B) on the social optimum position. Use an appropriate externalities diagram in your answer.
54 exam-style questions on Edexcel A A Level Economics 1.3.2 Externalities. Each one has a worked solution and a mark scheme showing where the marks go.