Port Development and the Environment: External Costs from Dredge Disposal and Air Pollution

Abstract

This paper analyzes two external costs often associated with port development, cost to fisheries from marine dredge disposal and damages from air pollution, using estimates of development and operation for a proposed (but since cancelled) container port as a case study. For dredge disposal, a bio-economic model was used to assess short- and long-term and indirect (joodweb) damages to fisheries from marine disposal of clean sediments. In the case of air pollution, estimates of annual activity levels and emission coefficients are used to estimate incremental annual emissions of three key pollutants (NOx, HC and CO) for trucks, trains, yard vehicles, and vessels. These estimates allow for phasing in of strict new air pollution regulations. For both external costs, sensitivity analyses are used to reflect uncertainty. Estimates of shadow values in year 2002 dollars amount from $0.094 per cubic yard to $0.169 per cubic yard of clean dredged material for the selected disposal site and from $0.0584 per mile (jor current control standards) to $ 0. 0023 per mile (after phasing in of new regulations) for air pollution from heavy trucks.