TY - JOUR
T1 - An environmental and economic investigation of shipping network configuration considering the maritime emission trading scheme
AU - Zhou, Xiaoxuan
AU - Dai, Lei
AU - Hu, Hao
AU - Zhang, Mingyang
N1 - Funding Information:
This work was supported by National Natural Science Foundation of China [grant number 72004132], Science and Technology Commission of Shanghai Municipality [grant number 21692195200], Education Commission of Shanghai Municipality [grant number 2022ZKNH013]. We are appreciative of their support. The authors also thank the guest editors, editors and anonymous reviewers for their valuable suggestions and comments.
Funding Information:
This research work is supported by National Natural Science Foundation of China [grant number 72004132 ], Science and Technology Commission of Shanghai Municipality [grant number 21692195200 , 23692111100 ], Education Commission of Shanghai Municipality [grant number 2022ZKNH013 ].
Publisher Copyright:
© 2024 Elsevier Ltd
PY - 2024/3/1
Y1 - 2024/3/1
N2 - Decarbonization is currently an urgent issue for the international shipping industry. The maritime Emission Trading Scheme (METS) is an effective measure, while the utilization of the Arctic Northeast Passage (NEP) and carriers' profit-driven reactions may affect its effectiveness. Thus, this paper proposed an optimization model to investigate the carrier's economic viability and the CO2 emission under METS for the SCR/NEP-combined liner shipping service. Various METS scenarios are set based on 1) geographical scope (GS), 2) free emission quota percentage (FEQP), and 3) carbon price (CP). Results show that METS would guarantee a short-term CO2 emission reduction within the GS, but the volume of overall CO2 emission in some scenarios would be even larger. In individual cases, METS positively affects the carrier's economic viability. METS disincentivizes carriers to use the NEP, especially when it is implemented in the Arctic area or with high pricing. For carriers, the main countermeasure to cope with METS is slow steaming in the GS. Some valuable insights for policymakers designing METS: it is not the case that the higher the value of GS/FEQP/CP, the better the overall CO2 emission reduction effect. A moderate GS and CP may be appropriate for balancing carriers' economic benefits and emission reduction efficiency, in whole or in part. FEQP can be set relatively low at the start of METS and raised gradually to motivate the carriers in emission control.
AB - Decarbonization is currently an urgent issue for the international shipping industry. The maritime Emission Trading Scheme (METS) is an effective measure, while the utilization of the Arctic Northeast Passage (NEP) and carriers' profit-driven reactions may affect its effectiveness. Thus, this paper proposed an optimization model to investigate the carrier's economic viability and the CO2 emission under METS for the SCR/NEP-combined liner shipping service. Various METS scenarios are set based on 1) geographical scope (GS), 2) free emission quota percentage (FEQP), and 3) carbon price (CP). Results show that METS would guarantee a short-term CO2 emission reduction within the GS, but the volume of overall CO2 emission in some scenarios would be even larger. In individual cases, METS positively affects the carrier's economic viability. METS disincentivizes carriers to use the NEP, especially when it is implemented in the Arctic area or with high pricing. For carriers, the main countermeasure to cope with METS is slow steaming in the GS. Some valuable insights for policymakers designing METS: it is not the case that the higher the value of GS/FEQP/CP, the better the overall CO2 emission reduction effect. A moderate GS and CP may be appropriate for balancing carriers' economic benefits and emission reduction efficiency, in whole or in part. FEQP can be set relatively low at the start of METS and raised gradually to motivate the carriers in emission control.
KW - Arctic shipping
KW - CO emission
KW - Emission trading scheme
KW - Green shipping
KW - Policy assessment
UR - http://www.scopus.com/inward/record.url?scp=85182510316&partnerID=8YFLogxK
U2 - 10.1016/j.ocecoaman.2023.107013
DO - 10.1016/j.ocecoaman.2023.107013
M3 - Article
AN - SCOPUS:85182510316
SN - 0964-5691
VL - 249
JO - OCEAN AND COASTAL MANAGEMENT
JF - OCEAN AND COASTAL MANAGEMENT
M1 - 107013
ER -