Optimal subsidy design for shore power usage in ship berthing operations

Abstract

Maritime transportation is the backbone of international trade but ships emit a large amount of air pollutants at ports. To encourage ships to use clean energy while berthing at port, subsidies are provided to ship operators that use clean energy and the subsidy amount is generally determined based on subjective judgment. We, therefore, examine the optimal subsidy design for government-operated ports, aiming at balancing the environmental benefits and subsidy expenses. Considering the uncertainty of energy requirements by ships, we build a stochastic optimization model. Taking advantage of the problem structure, we convert the model into a deterministic one by applying sample average approximation and a binomial distribution. The model is then linearized and solved by CPLEX. A series of numerical experiments with realistic parameters are conducted to validate the model and useful managerial insights are obtained.

Construction and demolition waste disposal charging scheme design

“…In this section, we propose two mixed-integer programs for the optimal design of CWDC schemes. The notion for describing the models are listed in Section 4.1; Section 4.2 presents bilevel mixed-integer programming models (Wang et al, 2022a(Wang et al, , 2022b for the optimal design of CWDC fee; Section 4.3 reformulates these models and transforms them into single-level mixed-integer programming models; Section 4.4 describes linearization techniques to further transform them into mixed-integer linear programming models, which enable a variety of off-the-shelf solvers to address (Zavadskas et al, 2016).…”

Emerging technology and management research in the container terminals: Trends and the COVID-19 pandemic impacts

“… Yu et al (2022b) proposed a multi-objective optimization model to solve the problem of berth allocation and quay crane assignment with the consideration of daily use of shore power. Wang et al (2022b) examined the optimal subsidy design for government-operated ports, aiming at balancing the environmental benefits and subsidy expenses.…”

Shore Power Deployment Problem—A Case Study of a Chinese Container Shipping Network

“…Considering the environmental benefits, the local government is the main force for promoting the application of SP. Subsidies have been recognized as a promising method, to improve the SP utilization rate [23,24]. To obtain the optimal subsidy plan, studies have been conducted for subsidy-plan optimization [23,24].…”

“…Subsidies have been recognized as a promising method, to improve the SP utilization rate [23,24]. To obtain the optimal subsidy plan, studies have been conducted for subsidy-plan optimization [23,24]. Given that the utilization rate depends on not only the availability of onshore facilities but also the willingness of ships to use it while berthing, it is necessary to consider the subsidy and deployment problem of ports and ships together [24].…”