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Potential impacts of ballast water regulations on international trade, shipping patterns, and the global economy: An integrated transportation and economic modeling assessment

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Listed:
  • Zhaojun Wang
  • Duy Nong
  • Amanda M. Countryman
  • James J. Corbett
  • Travis Warziniack

Abstract

Global ballast water management regulations aiming to decrease aquatic species invasion require actions that can increase shipping costs. We employ an integrated shipping cost and global economic modeling approach to investigate the impacts of ballast water regulations on bilateral trade, national economies, and shipping patterns. Given the potential need for more stringent regulation at regional hotspots of species invasions, this work considers two ballast water treatment policy scenarios: implementation of current international regulations, and a possible stricter regional regulation that targets ships traveling to and from the United States while other vessels continue to face current standards. We find that ballast water management compliance costs under both scenarios lead to modest negative impacts on international trade and national economies overall. However, stricter regulations applied to U.S. ports are expected to have large negative impacts on bilateral trade of several specific commodities for a few countries. Trade diversion causes decreased U.S. imports of some products, leading to minor economic welfare losses.

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  • Zhaojun Wang & Duy Nong & Amanda M. Countryman & James J. Corbett & Travis Warziniack, 2020. "Potential impacts of ballast water regulations on international trade, shipping patterns, and the global economy: An integrated transportation and economic modeling assessment," Papers 2008.11334, arXiv.org.
    • Handle: RePEc:arx:papers:2008.11334
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    References listed on IDEAS

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    Cited by:

    1. Jia, Zhijie & Lin, Boqiang & Wen, Shiyan, 2022. "Electricity market Reform: The perspective of price regulation and carbon neutrality," Applied Energy, Elsevier, vol. 328(C).
    2. Shenhai Huang & Chao Du & Xian Jin & Daini Zhang & Shiyan Wen & Yu’an Wang & Zhenyu Cheng & Zhijie Jia, 2022. "The Boundary of Porter Hypothesis: The Energy and Economic Impact of China’s Carbon Neutrality Target in 2060," Energies, MDPI, vol. 15(23), pages 1-18, December.
    3. Okko Outinen & Sarah A Bailey & Katja Broeg & Joël Chasse & Stacey Clarke & Rémi M Daigle & Stephan Gollasch & Jenni E Kakkonen & Maiju Lehtiniemi & Monika Normant-Saremba & Dawson Ogilvie & Frederiqu, 2021. "Exceptions and exemptions under the ballast water management convention – Sustainable alternatives for ballast water management?," Post-Print hal-03321948, HAL.
    4. Zhaojun Wang & Amanda M. Countryman & James J. Corbett & Mandana Saebi, 2021. "Economic and environmental impacts of ballast water management on Small Island Developing States and Least Developed Countries," Papers 2108.13315, arXiv.org.

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