title: Ship Compliance in Emission Control Areas: Technology Costs and Policy Instruments.
abstract: This paper explores whether a Panama Canal Authority pollution tax could be an effective economic instrument to achieve Emission Control Area (ECA)-like reductions in emissions from ships transiting the Panama Canal. This tariff-based policy action, whereby vessels in compliance with International Maritime Organisation (IMO) ECA standards pay a lower transit tariff than noncompliant vessels, could be a feasible alternative to petitioning for a Panamanian ECA through the IMO. A $4.06/container fuel tax could incentivize ECA-compliant emissions reductions for nearly two-thirds of Panama Canal container vessels, mainly through fuel switching; if the vessel(s) also operate in IMO-defined ECAs, exhaust-gas treatment technologies may be cost-effective. The RATES model presented here compares current abatement technologies based on hours of operation within an ECA, computing costs for a container vessel to comply with ECA standards in addition to computing the Canal tax that would reduce emissions in Panama. Retrofitted open-loop scrubbers are cost-effective only for vessels operating within an ECA for more than 4500 h annually. Fuel switching is the least-cost option to industry for vessels that operate mostly outside of ECA regions, whereas vessels operating entirely within an ECA region could reduce compliance cost with exhaust-gas treatment technology (scrubbers).
authors.affiliation: †School of Marine Science and Policy, University of Delaware, Robinson Hall, Newark, Delaware 19716, United States.
authors.forename: Edward W
authors.initials: EW
authors.lastname: Carr
authors.affiliation: †School of Marine Science and Policy, University of Delaware, Robinson Hall, Newark, Delaware 19716, United States.
authors.forename: James J
authors.initials: JJ
authors.lastname: Corbett
mesh_terms: D000397:Air Pollution; D003365:Costs and Cost Analysis; D058735:Environmental Policy / Q000191:economics*; D006801:Humans; D008962:Models, Theoretical; D010177:Panama Canal Zone; D012767:Ships; D001335:Vehicle Emissions / Q000032:analysis
chemical_list: D001335:Vehicle Emissions