University Curtin University (CU)
Subject BLAW1002: Markets and Legal Frameworks

Assignment Brief:

Consider the market for merchant ships. Read the following key article and the relevant weblinks contained within https://theconversation.com/why-decarbonizing-marine-transportation-might-not-be-smooth-sailing-116949

  • Based on the cited readings (links contained within the key article): construct a table and summarise the key benefits and external environmental costs of merchant ships.

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  • Based on Module E3, draw a relevant diagram to illustrate and explain the negative production externality of merchant ships. Label your axes and curves carefully and use hypothetical numbers in your diagram.
  • Read the following key articles that talk about the need for sufficient compensation for those parties negatively affected in the Mauritian oil spill: https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2453 https://www.climatechangenews.com/2020/08/28/mauritius-oil-spill-compensation-limited-maritime-law-technicality/

Assume for simplicity that the main third party affected is the tourism industry in Mauritius. Building on the key diagram you developed in part (b) above, illustrate and critically evaluate the government policy of compensation to help solve the market failure in this case

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