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A compliance cost analysis of the SECA regulation in the Baltic Sea

Author

Listed:
  • Gunnar Prause

    (Tallinn University of Technology, Estonia)

  • Eunice Omolola Olaniyi

    (Tallinn University of Technology, Estonia)

Abstract

This paper measures and analyses the cost of sulphur emission control area (SECA) regulations that came into effect on the 1st of January 2015 in the BSR. Given the upcoming 2020 global sulphur directive, the role of the SECA regulatory costs analysis is vital in shaping global compliance. The specific measure of regulatory costs used the data of ship traffic in the BSR and their fuel consumption before and after the SECA implementation to estimate the change in shipping costs in the SECA area. The result indicates high costs, but not overly significant or negative as was predicted before the enforcement primarily because of the reduced cost of maritime fuel

Suggested Citation

  • Gunnar Prause & Eunice Omolola Olaniyi, 2019. "A compliance cost analysis of the SECA regulation in the Baltic Sea," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1907-1921, June.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:4:p:1907-1921
    DOI: 10.9770/jesi.2019.6.4(26)
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    References listed on IDEAS

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    1. James Hammitt, 2000. "Are The Costs of Proposed Environmental Regulations Overestimated? Evidence from the CFC Phaseout," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(3), pages 281-302, July.
    2. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-674, August.
    3. Robert W. Hahn, 1998. "Policy Watch: Government Analysis of the Benefits and Costs of Regulation," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 201-210, Fall.
    4. Renda, Andrea, 2017. "One Step Forward, Two Steps Back? The New U.S. Regulatory Budgeting Rules in Light of the International Experience," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 8(3), pages 291-304, October.
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    Cited by:

    1. Lingyue Li & Suixiang Gao & Wenguo Yang, 2022. "The enforcement of ECA regulations: inspection strategy for on-board fuel sampling," Journal of Combinatorial Optimization, Springer, vol. 44(4), pages 2551-2576, November.
    2. Gunnar Prause & Eunice O. Olaniyi, 2020. "Building a sustainable and transferable sulphur emission free BSR [Die Errichtung eines nachhaltigen und übertragbaren Ostseeraumes ohne Schwefelemissionen]," Sustainability Nexus Forum, Springer, vol. 28(1), pages 21-27, June.
    3. Felix Prause & Gunnar Prause & Robert Philipp, 2022. "Inventory Routing for Ammonia Supply in German Ports," Energies, MDPI, vol. 15(17), pages 1-22, September.

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    More about this item

    Keywords

    SECA regulation; costs of regulation; clean shipping; sustainability; global sulphur cap;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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