As its first objective, Balsa Policy Institute will lay groundwork for the potential full or partial repeal of stringent shipping (cabotage) regulations imposed by the Jones Act. This requires quantifying the negative effects of the Act in a way that holds up to scrutiny by policymakers, academics, industry leaders, and the public.

The economic impact of the Jones Act is large and diffuse. Jones Act scholars have largely restricted themselves to analyzing only its impact on specific sectors or regions. We have some information on the devastating costs the Jones Act imposes in Hawaii and Puerto Rico, on the domestic LNG industry, on domestic wind farm installation, and in many other fragmented analyses. Yet, surprisingly, there does not yet exist an analysis of the Jones Act’s impact in its entirety and that considers the relevant counterfactual worlds. Efforts to repeal the most damaging elements of the Jones Act would benefit greatly from a study that rigorously and defensibly quantifies the Act’s full effects.

Balsa Policy Institute believes that rigorous, empirical research, especially research that focuses on the questions key stakeholders care about most, is an essential lever for public policy—and that such research rarely sees financing commensurate with its impact. We think establishing robust credible answers to these questions is one of the highest-return investments available to help bring about a more effective government. If we can provide a comprehensive and clear picture of the economic consequences of the Jones Act, including the key considerations of stakeholders, we’ll have created a powerful tool that anyone can use to move the issue forward with policymakers, industry stakeholders, and the public.

Balsa will need additional resources to see this project to completion. The fixed cost of having an operational 501c(3) has already been paid, but we’re looking for additional funding to commission academic studies and other work and to finance the day-to-day operations of running a nonprofit and coordinating the work that is being done.

Your contribution will go towards:

• Sustaining Balsa Policy Institute throughout 2024 ($40,000)
• Expert consultation, publication, and dissemination of academic research ($40,000)

If we get $35,000 more than our target, we can also hire a legal consultant to draft legislative language for a variety of potential implementations of a Jones Act repeal, including potential concessions to various stakeholders.

If we get $150,000 more than our target, we will look to bring on additional staff for 2024.

Every donation, big or small, supports the repeal of the Jones Act and creates a more informed and effective policy environment. By supporting Balsa Policy Institute, you aren’t just funding a study—you’re investing in the potential for more informed policy decisions that could hugely improve our politics, our economy, and our country.