Optimal compliance choices for ocean carriers under the sulphur regulation
This paper investigates how carriers adapt to the sulphur regulation by choosing between sulphur scrubber (SS) and fuel switching (FS). A cost minimization model is proposed to determine the optimal compliance choices, considering factors such as fuel prices, capital cost difference between SS and FS, and shipping service profile. The authors find that the optimal choice depends on the tradeoff between the capital cost advantage of FS and the fuel cost advantage of SS. And such a tradeoff is moderated by the vessel’s annual fuel consumption. Ignoring the speed differentiation behavior of FS vessels would exaggerate the benefits of SS. But whether it can cause a wrong compliance choice depends on the extent of overestimation, which depends on the presence in emission control areas and fuel prices. When fuel price volatility is factored in, a portfolio of FS and SS might be better than simply choosing either one for all vessels.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/13619209
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Supplemental Notes:
- © 2023 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
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Authors:
- Sheng, Dian
- Jiang, Jiehui
- Wang, Hua
- Tan, Zhijia
- Wang, Yadong
- Publication Date: 2023-3
Language
- English
Media Info
- Media Type: Web
- Features: Figures; References; Tables;
- Pagination: 103639
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Serial:
- Transportation Research Part D: Transport and Environment
- Volume: 116
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 1361-9209
- Serial URL: http://www.sciencedirect.com/science/journal/13619209
Subject/Index Terms
- TRT Terms: Costs; Environmental policy; Fuel consumption; Scrubbers; Ships; Sulfur
- Subject Areas: Energy; Environment; Marine Transportation; Vehicles and Equipment;
Filing Info
- Accession Number: 01876589
- Record Type: Publication
- Files: TRIS
- Created Date: Mar 23 2023 10:19AM