International Trade and Air Pollution: The Economic Costs of Air Emissions from Waterborne Commerce Vessels in the United States

Kevin Gallagher and Robin Taylor

No 03-08, GDAE Working Papers from GDAE, Tufts University

Abstract: Although there is a burgeoning literature on the effects of international trade on the environment, relatively little work has been done on where trade most directly effects the environment: the transportation sector. This article shows how international trade is affecting criteria air pollution emissions in the United States’ shipping sector. Recent work has shown that cargo ships have been long overlooked regarding their contribution to air pollution. Indeed, ship emissions have recently been deemed “the last unregulated source of traditional air pollutants.†Air pollution from ships has a number of significant local, national, and global environmental effects. Building on past studies, we examine the economic costs of this increasing and unregulated form of environmental damage. We find that total emissions from ships are largely increasing due to the increase in foreign commerce (or international trade):

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