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Estimating the costs and external benefits of reducing shipping-induced air pollution: a case study of Xiamen Harbour, China

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  • Xiaofang Wu

    (Jimei University)

  • Zhi Huang

    (Xiamen Institute of Environmental Science)

Abstract

A cost–benefit analysis of air pollution reduction measures in maritime transport systems can support the sustainability commitments of the industry and validate the related economic incentives. However, a systematic cost–benefit analysis approach has not yet been framed, as data availability and resources are limited. This study explores an alternative cost–benefit estimate approach to reduce air pollution in shipping based on a broad review and applies it to a case study regarding the domestic emission controls of Xiamen shipping. The results show that switching to a fuel with a maximum allowable fuel sulphur content of 1.5% to 0.5% for cargo ships and other vessels leads to more than nine times the external benefits to costs, while switching to a fuel with less than 0.5% sulphur content may lead to below-cost external benefits; the benefits/cost ratio based on shore power is 3.14. The proposed approach contributes to estimating not only the input costs but also their external benefits to fit the externality of sustainability actions. In the future, more site-specific factors and parameters and more case studies are recommended to improve the research reliability and accuracy as well as enrich the knowledge base for shipping sustainability development.

Suggested Citation

  • Xiaofang Wu & Zhi Huang, 2024. "Estimating the costs and external benefits of reducing shipping-induced air pollution: a case study of Xiamen Harbour, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28785-28808, November.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:11:d:10.1007_s10668-023-03840-7
    DOI: 10.1007/s10668-023-03840-7
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    References listed on IDEAS

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