Abstract-This paper investigates the economic and environmental effects of supplying Abu Dhabi with desalinated ballast water brought in by exporting oil tankers and liquefied natural gas (LNG) vessels on their return route from oil and natural gas trade. Traditionally, ballast water is discharged into the ocean which leads to a negative impact on marine environments. The International Maritime Organization (IMO) has developed regulations that prohibit the discharge of untreated ballast water in order to prevent these negative environmental effects. An efficient way of meeting IMO requirements would be to desalinate the ballast water and supply it domestically to local residents for consumption. In this paper, we illustrate two models. The first is a cost benefit analysis model that examines the economics of desalinating ballast water using oil tanker/LNG carrier engine waste heat under different domestic water demand scenarios. In addition to environmental benefits, results show that ballast water trading can generate cost savings of between $771.5 million and $602.0 million from 2012 to 2030, depending on realized domestic water demand. The second model presents a computable general equilibrium (CGE) analysis, performed to identify GDP (Gross Domestic Product) and inter-sector production changes. An environmental analysis is built into this model to understand the impact on climate change. Flexible price and fixed price policy emissions increase under both flexible price and fixed price policy scenarios, and that implementation of a flexible price policy has more of an impact on the growth of GDP and CO 2 emissions than implementation of a fixed price policy.Index Terms-Ballast water management, desalination, environmental analysis, computational general equilibrium model.
I. INTRODUCTIONAbu Dhabi relies heavily on desalination of seawater due to the emirate's lack of freshwater resources. An economic boom over the past decade has resulted in substantial growth in the demand for fresh water. There are currently eight onshore desalination plants in the emirate with additional plants in the works. Desalination plants are expensive to build and operate and produce negative environmental effects. The emirate is currently seeking a sustainable approach to meeting this growing freshwater demand. Implementation of a ballast water desalination program can make a cost effective contribution to the supply of freshwater in the emirate while mitigating the harmful environmental effects of existing ballast water treatment practices on the local marine environment.Abu Dhabi is the largest emirate in the UAE and one of the world's major oil exporting economies. The emirate exported 2.3 million barrels of oil per day (bpd) in 2009. It also has the world's fifth largest gas reserves. Oil from the emirate is exported primarily from the port of Fujairah [1]. Approximately 93% of the gas exported from Abu Dhabi goes to Japan via liquefied natural gas (LNG) carriers under long term contracts [2]. Robust oil and gas exporting activ...