The Management of Environment Cost Caused by Ballast Water

According to classical economic theory,external cost is the indirect,and uncompensated,social or environmental cost caused to an uninvolved third party that arises as an effect of another party’s activity.In light of this,the environmental cost caused by ballast water is considered as a negative externality.This paper aims to contribute by proposing that the environmental cost caused by ballast water can be determined through questionnaires,and that the imposition of a Pigouvian retributive tax is required to compensate for the environmental damage caused.The paper proceeds as follows.Firstly,ballast water management is discussed.Second,the environmental cost is discussed and it is asserted that it is important to have clear regulations and to update them frequently to prevent or minimize ballast water’s negative impact on the environment.Finally,it is suggested that the environmental cost caused by ballast water can be determined by questionnaires and,more specifically,by the WTP(Willingness to Pay)method,and that a special Pigouvian corrective taxation which can internalize this cost should be imposed.

Evaluation of Environmental Impact Assessment Factors in Maritime Industry

The environmental impact of shipping sector includes the pollution caused by vessels to air and water environment.The water pollution is primarily caused by ship accidents and by untreated ballast water.To avoid maritime accidents,a complex system of regulations and safety management measures has been initiated to minimize and possibly avoid similar maritime disasters in the future.On the other hand,untreated ballast water,despite the ease of management by shipping companies,is regarded as one of the major maritime threats internationally and arguably a severe threat to biodiversity.The International Convention on the Control and Management of Ballast of Ships and Sediments,entered into force in September 2017,focusing on the prevention of the risk of importation and the proliferation of foreign species after the discharge of untreated ballast water from vessels.An option to reduce this risk is to install water treatment systems on the ballast tanks.Air pollution deriving from vessels is an additional issue that has great significance and impact on public health and the environment in general.Ships emit large amounts of air pollutants,mainly in the form of SO_(x)(Sulfur O_(x)ide),NO_(x)(Nitrogen O_(x)ide)and particulate matter,which are constantly growing and affecting humans.Vessels also produce nearly 3%of the world’s total greenhouse gas emissions,leading to rampant weather conditions.From 1 January 2020,the IMO(International Maritime Organization)imposed a new global sulfur emission ceiling of 0.5%on fuels,a reduction from the current limit of 3.5%,aiming at a gradual extinction of sulfur emissions in the near future.Pursuant to the previous analysis,three systems/indicators that are applied to vessels are going to be assessed,based on UNCTAD(United Nations Conference on Trade and Development)Report Data,to evaluate their impact in correlation to the measure of compliance to the relevant regulations so far:(i)the ship must have an equipped and installed ballast treatment system;(ii)the ship must be equipped and fitted with a special filter to eliminate sulfur emissions;(iii)the ship must comply with Tier III regulations to successfully reduce NO_(x)emissions.