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Correlated Pollutants, Avoidance, and Local Environmental Policy

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  • Richard Klotz
  • Julia Berazneva

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

Suggested Citation

  • Richard Klotz & Julia Berazneva, 2025. "Correlated Pollutants, Avoidance, and Local Environmental Policy," The Energy Journal, , vol. 46(5), pages 85-111, September.
    • Handle: RePEc:sae:enejou:v:46:y:2025:i:5:p:85-111
    DOI: 10.1177/01956574251330842
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    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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