Shipping companies’ choice of low sulfur fuel oil with government subsidy and different maritime supply chain power structures

Wang, Chuanxu; Jiao, Yan

doi:10.1080/03088839.2021.1950860

Cited by 20 publications

(5 citation statements)

References 33 publications

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“…Particularly, some research has applied traditional game theories to consider the impact of government subsidies in the analysis of low-carbon port operations [26,38]. Wang et al (2022) [25] outlined a Stackelberg game theory model for optimising government subsidies for Shore Side Electricity (SSE) adoption in the Port of Shanghai, providing insights into the prioritisation of subsidies on ships and identifying factors that should be subsidized. As technology becomes more advanced and information becomes more accessible and accurate, information-sharing mechanisms in port operations have been studied [20,32].…”

Section: Application Of Traditional Game Theories In Analysing Low-ca...mentioning

confidence: 99%

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

Li,

Luan,

et al. 2024

Systems

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The sustainable development of the maritime supply chain is an undeniable trend. Low-carbon port operations are a vital component of creating an eco-friendly maritime supply chain, requiring substantial investments in technologies that reduce carbon emissions. However, the key factors influencing investment decisions by ports and shipping companies in these green technologies, particularly government subsidies, remain poorly understood. Hence, this paper proposes a game-based framework to explore the impact of government subsidies. Through numerical analysis, this study first demonstrates that the pricing decisions, investment level, and profits of ports and shipping companies are sensitive to government subsidies and low-carbon preferences of the market; however, the influence of government subsidies and low-carbon preferences varies with different adopted investment strategies. Furthermore, investment decisions are mainly influenced by investment costs, low-carbon preferences, government subsidies, and cost-sharing ratios. Ports are more sensitive to government subsidies and low-carbon preferences while shipping companies are more sensitive to government subsidies and cost-sharing ratios. In addition, government subsidies and low-carbon preferences are substitutes for each other and can balance cost-sharing ratios between ports and shipping companies. Finally, recommendations are provided to the government, ports, and shipping companies for promoting low-carbon port operations based on the findings of this study.

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Section: Application Of Traditional Game Theories In Analysing Low-ca...mentioning

confidence: 99%

“…Assumption 5. When the port or shipping company invests in emission-reduction technology, the government provides a certain amount of low-carbon subsidy, which increases the revenue gained per unit of a product by n [55]. Assumption 6.…”

Section: Notations and Assumptionsmentioning

confidence: 99%

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

Li,

Luan,

et al. 2024

Systems

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“…Te actual shipper's subsidies and government subsidies were inefcient when the shipper's preference was high. Wange and Jiao [20] developed a game model under three diferent power structures to investigate the equilibrium solutions of two carriers. Sun et al [21] explored the infuence of subsidy participants on cruise home ports in the cruise supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

Decisions on Technologies for Emissions Control in Port Areas under Subsidy and Low-Carbon Preferences of Customers

Zhou

2022

Mathematical Problems in Engineering

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The emission control technologies decisions of port and shipping enterprises under subsidy and customers’ low-carbon preferences are discussed from a supply chain perspective. The game models are established under three game models (port-leader Stackelberg game, ship-leader Stackelberg game, and Nash game). The obtained results show that the impact of subsidy and low-carbon preference on demand in its pricing always is considered by the leader in the port supply chain. The profits and emissions in the Nash game are higher than that in the Stackelberg game. When subsidies and customers’ low-carbon preferences are low, the supply chain’s overall profits of using low sulfur oil are higher than that of using shore power. But the supply chain’s carbon emissions of adopting low sulfur oil are also higher than that of adopting shore power. When subsidies and low-carbon preferences of customers are high, the supply chain’s overall profits of using shore power are higher than that of using low sulfur oil. But the supply chain’s carbon emissions of adopting shore power are also higher than that of adopting low sulfur oil. When subsidy and low-carbon preference of customers are in the appropriate(medial) range, the supply chain would choose shore power to reduce emissions from the perspective of profits, and the whole carbon emissions of using shore power are lower than that of using low sulfur oil, so the regulator(government) and enterprises can achieve a win-win situation. Hence for a regulator who has to balance emission control and enterprises’ profits, implementing moderate subsidy within the appropriate range is the better strategy.

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“…Solving the problem of carbon emissions in the shipping industry requires an institutional solution, so the use of policy tools is indispensable (Wang et al, 2022; Wang & Jiao, 2022). IMO has been committed to projects for global greenhouse gas emission reduction, leading and promoting various conventions and agreements, and has achieved certain results (Wang et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…As is shown in Table 1: Taking Shanghai International Port Group (SIPG) for an instance, according to its annual <Sustainable Development Report> (https://www. portshanghai.com.cn), the energy consuming volume of last 7 years is shown in Table 2: Solving the problem of carbon emissions in the shipping industry requires an institutional solution, so the use of policy tools is indispensable Wang & Jiao, 2022). IMO has been committed to projects for global greenhouse gas emission reduction, leading and promoting various conventions and agreements, and has achieved certain results (Wang et al, 2021).…”

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confidence: 99%

Impacts of the carbon tax on green shipping supply chain under the port competition

Song

Wang

2023

Expert Systems

Self Cite

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The shipping industry plays an important role in international trade and world economic development. In particular, the rapid growth of the shipping industry since 2020 has become an important factor in supporting and stimulating the rapid recovery of the global economy in the post epidemic era. However, under the background that climate warming has increasingly become the theme of common concern for all mankind, greenhouse gas emission reduction has increasingly attracted the attention of governments of all countries, and has also become the requirement for production and operation of all industries, the green, environmental protection and sustainable development of the shipping industry have also become the focus of participants in all sectors. As environmental problems put forward requirements of a green shipping industry, some policies aimed at reducing pollution and greenhouse gas emissions, such as carbon tax, have brought considerations to the strategies of ports and enterprises, especially concerning their competition and cooperation. This study established a shipping supply chain system composed of two ports and one shipping company in order to analyse the impact of carbon tax on the shipping supply chain, and to optimize the decision‐making of government, ports and shipping companies. Through three‐level Stackelberg game of four models including ports cooperating or not cooperating with each other, and carbon tax levied on ports or the shipping company, the study finds that the collection of carbon tax will reduce the container handling volume of ports thus reducing the profits of both ports and the shipping company, but the handling volume when the government puts carbon tax on ports is lower than that when it puts carbon tax on the shipping company, and the handling volume under the port cooperation mode is lower than that under the port non‐cooperation mode. As the collector of carbon tax, the government's income when taxing ports is higher than that when taxing shipping companies, and when ports cooperate, the government's income is lower than that when ports do not cooperate. Moreover, no matter the ports cooperate with each other or not, the impact of carbon tax on port container handling volume under the mode of carbon tax levied by the government on ports is more significant than that when carbon tax is levied on the shipping company, leaving the former mode a lower container handling volume and lower profit. The findings of this study have the following significance and suggestions for the participants of shipping supply industry: In order to maximize the government's target value, the government should give priority to taxing shipping companies rather than ports; Under the background of carbon tax, ports should choose limited non‐cooperation strategies.

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Shipping companies’ choice of low sulfur fuel oil with government subsidy and different maritime supply chain power structures

Cited by 20 publications

References 33 publications

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

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

Decisions on Technologies for Emissions Control in Port Areas under Subsidy and Low-Carbon Preferences of Customers

Impacts of the carbon tax on green shipping supply chain under the port competition

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