A Level Playing Filed in Shipping with the New ECA Regulation

Abstract

Emissions from vessels affect individual’s health and the environment. In the year 2000 emissions from the shipping industry was responsible for approximately 49500 premature deaths and the extern costs associated with individual’s health reaching a total of 7% of Europe’s total health costs. To reduce the amount of pollution from the shipping industry Emission Control Areas (ECA) has been implemented. This paper will examine the effect of the new ECA regulation that entered into force on the first of January 2015 and oil prices on the amount of Sulphur emitted. To do this we will be using data received form Marine Benchmark, the forefront of shipping data. We find a significant effect of the new ECA regulation as well as a fuel price effect on the amount of Sulphur released.