Impact of maritime transportation on environment- A review

Abstract

Liberalisation policies adopted by a large number of countries, implementation of technological innovations with developments in communication networks and continuous reduction in transport costs led to the growth of international transportation of goods over the last 50 to 60 years. Being looked upon as a less polluting and cost efficient mode of transportation, shipping has received wide acceptance due to its economies of scale. Higher and persistent growth prospects of maritime transportation calls for an examination into its environmental externalities. The present paper examines the adverse effects of maritime transportation on environment, that is, on the externalities of transporting cargoes using water mode of transportation. This review carried out on the recent literature on externalities of maritime transportation suggests that appropriate policies may be adopted to address the issue at national and international levels without which international trade may be hampered.