Choice of Emission Control Technology in Port Areas with Customers’ Low-Carbon Preference

Abstract

The choice of emission control technology in a port supply chain under a cap-and-trade scheme considering low-carbon preferences of customers, is explored in this study. In port areas, the port supply chain consisting of one port and one ship can adopt either shore power (SP) or low sulfur fuel oil (LSFO) to reduce emissions. The economic and social performance of the port supply chain when either SP or LSFO is implemented is compared under three different game models (port-leader Stackelberg game, ship-leader Stackelberg game and the Nash game). The obtained results show that the profits and emissions in the Nash game are higher than those in the other two games. When environmental concern is relatively small, social welfare in the Nash game is the highest, while social welfare in the one-party-dominant structure is superior to that in the Nash structure, under high environmental concern. When the customers’ low-carbon preferences and carbon prices are low, both the supply chain’s profits and carbon emissions when LSFO is used are higher than those from using SP. From the perspective of social welfare maximization, in general, LSFO is preferred when carbon price, customers’ low-carbon preference and environmental concern are all low or are all high. Otherwise, SP is the optimal decision. The findings can provide insights for governments in formulating emission control policies according to their own interests.

The Development of a Machine Learning-Based Carbon Emission Prediction Method for a Multi-Fuel-Propelled Smart Ship by Using Onboard Measurement Data

“…The study concluded that the most suitable methods are fully electric or diesel-electric hybrid solutions. Zhou and Zhang [6] considered the economic and social performance based on the fuel type of ships to study emission control technologies in the port supply chain within a cap-and-trade scheme. To reduce carbon emissions from ships, various efforts are being made to manage ship operations, analyze the performance of ship components, and consider alternative fuels.…”

Carbon Trading and Port Subsidies for Shipping Companies’ Emission Reduction Strategies Research

“…Consequently, China has implemented a series of measures at the national level, including the establishment of a carbon trading market, aimed at providing policy support to encourage emission reduction efforts. Research by ZHOU H and Ghosh [1,2] provides insights into selecting appropriate emission control technologies, especially through the comparison of the impacts of shore power (SP) and low sulfur fuel oil (LSFO). Facing the challenge of emission reduction, ports and shipping companies need to adopt green technologies, such as shore power and low sulfur fuel oil, to reduce carbon emissions.…”

An Analysis of the Impact of Government Subsidies on Emission Reduction Technology Investment Strategies in Low-Carbon Port Operations

“…Governments are enacting relevant laws and regulations to reduce emissions in port operations, and some countries, such as the US, Canada, and China, have established Emission Control Areas (ECAs) in their coastal regions [10,11]. On the other hand, the development of green technologies, such as tail gas scrubbers, liquefied natural gas (LNG), and shore power technology, offers opportunities for port operations to reduce emissions [12][13][14]. However, the heavy investment and retrofitting costs associated with these technologies make it challenging for ports and shipping companies to implement such technologies [15,16].…”

“…Existing studies have identified government subsidies and low-carbon preferences as key factors that can influence the decision of ports and shipping companies to invest in emission-reduction technologies [14,23,24]. However, some key questions regarding government subsidies and other related factors are still not well answered:…”