IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v6y2019i4p1907-1921.html
   My bibliography  Save this article

A compliance cost analysis of the SECA regulation in the Baltic Sea

Author

Listed:
  • Gunnar Prause

    (Tallinn University of Technology, Estonia)

  • Eunice Omolola Olaniyi

    (Tallinn University of Technology, Estonia)

Abstract

This paper measures and analyses the cost of sulphur emission control area (SECA) regulations that came into effect on the 1st of January 2015 in the BSR. Given the upcoming 2020 global sulphur directive, the role of the SECA regulatory costs analysis is vital in shaping global compliance. The specific measure of regulatory costs used the data of ship traffic in the BSR and their fuel consumption before and after the SECA implementation to estimate the change in shipping costs in the SECA area. The result indicates high costs, but not overly significant or negative as was predicted before the enforcement primarily because of the reduced cost of maritime fuel

Suggested Citation

  • Gunnar Prause & Eunice Omolola Olaniyi, 2019. "A compliance cost analysis of the SECA regulation in the Baltic Sea," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1907-1921, June.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:4:p:1907-1921
    DOI: 10.9770/jesi.2019.6.4(26)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/24/Prause_A_compliance_cost_analysis_of_the_SECA_regulation_in_the_Baltic_Sea.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/329
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2019.6.4(26)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert W. Hahn, 1998. "Policy Watch: Government Analysis of the Benefits and Costs of Regulation," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 201-210, Fall.
    2. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-674, August.
    3. James Hammitt, 2000. "Are The Costs of Proposed Environmental Regulations Overestimated? Evidence from the CFC Phaseout," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(3), pages 281-302, July.
    4. Renda, Andrea, 2017. "One Step Forward, Two Steps Back? The New U.S. Regulatory Budgeting Rules in Light of the International Experience," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 8(3), pages 291-304, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lingyue Li & Suixiang Gao & Wenguo Yang, 2022. "The enforcement of ECA regulations: inspection strategy for on-board fuel sampling," Journal of Combinatorial Optimization, Springer, vol. 44(4), pages 2551-2576, November.
    2. Gunnar Prause & Eunice O. Olaniyi, 2020. "Building a sustainable and transferable sulphur emission free BSR [Die Errichtung eines nachhaltigen und übertragbaren Ostseeraumes ohne Schwefelemissionen]," Sustainability Nexus Forum, Springer, vol. 28(1), pages 21-27, June.
    3. Felix Prause & Gunnar Prause & Robert Philipp, 2022. "Inventory Routing for Ammonia Supply in German Ports," Energies, MDPI, vol. 15(17), pages 1-22, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Managi, Shunsuke & Opaluch, James J. & Jin, Di & Grigalunas, Thomas A., 2006. "Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry," Ecological Economics, Elsevier, vol. 60(1), pages 204-215, November.
    2. Johannes Urpelainen, 2011. "Frontrunners and Laggards: The Strategy of Environmental Regulation under Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(3), pages 325-346, November.
    3. Matthias Finger & Rolf W. Künneke (ed.), 2011. "International Handbook of Network Industries," Books, Edward Elgar Publishing, number 12961.
    4. Stavins, Robert & Jaffe, Adam & Newell, Richard, 2000. "Technological Change and the Environment," Working Paper Series rwp00-002, Harvard University, John F. Kennedy School of Government.
    5. Giovanni Marin & Francesca Lotti, 2017. "Productivity effects of eco-innovations using data on eco-patents," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(1), pages 125-148.
    6. Hao Cai & Ling Liang & Jing Tang & Qianxian Wang & Lihong Wei & Jiaping Xie, 2019. "An Empirical Study on the Efficiency and Influencing Factors of the Photovoltaic Industry in China and an Analysis of Its Influencing Factors," Sustainability, MDPI, vol. 11(23), pages 1-22, November.
    7. Stavins, Robert & Hahn, Robert & Cavanagh, Sheila, 2001. "National Environmental Policy During the Clinton Years," RFF Working Paper Series dp-01-38, Resources for the Future.
    8. Fumitoshi Mizutani & Eri Nakamura, 2017. "How do governance factors affect inefficiency? Stochastic frontier analysis of public utility firms in Japan," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(3), pages 267-289, September.
    9. Winston Harrington & Richard D. Morgenstern & Peter Nelson, 2000. "On the accuracy of regulatory cost estimates," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(2), pages 297-322.
    10. Mak, James & Sheehey, Christopher & Toriki, Shannon, 2010. "The passenger vessel services act and America's cruise tourism industry," Research in Transportation Economics, Elsevier, vol. 26(1), pages 18-26.
    11. Johan Brolund & Robert Lundmark, 2017. "Effect of Environmental Regulation Stringency on the Pulp and Paper Industry," Sustainability, MDPI, vol. 9(12), pages 1-16, December.
    12. Kirkpatrick, Colin & Parker, David, 2004. "Regulation and the Privatisation of Water Services in Developing Countries: Assessing the Impact of the General Agreement on Trade in Services (GATS)," Centre on Regulation and Competition (CRC) Working papers 30600, University of Manchester, Institute for Development Policy and Management (IDPM).
    13. Lu, Yunguo & Zhang, Lin, 2022. "National mitigation policy and the competitiveness of Chinese firms," Energy Economics, Elsevier, vol. 109(C).
    14. Charles Dufour & Paul Lanoie & Michel Patry, 1995. "Regulation and Productivity in the Quebec Manufacturing Sector," CIRANO Working Papers 95s-12, CIRANO.
    15. You Wu & Jichuan Sheng & Fang Huang, 2015. "China’s future investments in environmental protection and control of manufacturing industry: lessons from developed countries," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 77(3), pages 1889-1901, July.
    16. Wayne B. Gray & Ron Shadbegian, 2024. "When Do Firms Shift Production across States to Avoid Environmental Regulation?," Land Economics, University of Wisconsin Press, vol. 100(3), pages 443-457.
    17. Brown, Jennifer & Hastings, Justine & Mansur, Erin T. & Villas-Boas, Sofia B., 2008. "Reformulating competition Gasoline content regulation and wholesale gasoline prices," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 1-19, January.
    18. Siedschlag, Iulia & Yan, Weijie, 2020. "Green investments and firm performance," Papers WP672, Economic and Social Research Institute (ESRI).
    19. Becker, Randy A., 2011. "Local environmental regulation and plant-level productivity," Ecological Economics, Elsevier, vol. 70(12), pages 2516-2522.
    20. Stefan Ambec & Paul Lanoie, 2007. "When and Why Does It Pay To Be Green?," CIRANO Working Papers 2007s-20, CIRANO.

    More about this item

    Keywords

    SECA regulation; costs of regulation; clean shipping; sustainability; global sulphur cap;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:6:y:2019:i:4:p:1907-1921. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.