Correlated Pollutants, Avoidance, and Local Environmental Policy

Richard Klotz and Julia Berazneva

The Energy Journal, 2025, vol. 46, issue 5, 85-111

Abstract: We study the impact of local fuel standards targeting sulfur-related air pollution from maritime transport off the U.S. west coast on damages from greenhouse gases (GHGs) and other local air pollutants. By avoiding the regulated area, ocean-going vessels increase fuel use and emissions, shift fuel consumption away from population centers, and forgo emission-lowering speed reductions within the regulated area. These adjustments increase damages from GHGs but reduce damages from local pollution, leading to a shift in the distribution of the environmental burden of shipping. Behavioral adjustments, and correlated pollutant responses, depend on policy design and shipping patterns. JEL Classification: D62, L51, Q51, Q52, Q53, Q58, R41

Keywords: correlated pollutants; local air pollution; GHG emissions; environmental policy; shipping (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:46:y:2025:i:5:p:85-111

DOI: 10.1177/01956574251330842

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