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Incentive policy for reduction of emission from ships: a case study of China


Zhu, M and Li, KX and Shi, W and Lam, JSL, Incentive policy for reduction of emission from ships: a case study of China, Marine Policy, 86 pp. 253-258. ISSN 0308-597X (2017) [Refereed Article]

Copyright Statement

Copyright 2017 Elsevier Ltd.

DOI: doi:10.1016/j.marpol.2017.09.026


Particulate matter (PM) emissions from ships in ports are a major contributor to air pollution and smog in port cities. The issue of how to reduce PM emissions has become a critical concern for port city residents and governments. This paper establishes an incentive policy to reduce PM emissions from ships in ports. Using a Panamax bulk carrier as a case study, eight alternative approaches that could be adopted by shipping companies are compared and their operational benefits are estimated. By restricting the analysis to emission control areas (ECAs), the net present value (NPV) model shows that the diesel particulate filter (DPF) is the most advantageous approach with the highest NPV, while the exhaust gas scrubber (EGS) approach is the most economically inefficient. Meanwhile, due to DPF's excellent performance in PM abatement, it is suggested that governments should prioritize the DPF approach when promoting the application of emission reduction technologies. From the perspective of social welfare, a positive social benefit of about US $20,000 will be generated over the life cycle of a ship. However, a low government pricing in China will reduce shipping companiesí operational performance as the emission control zone (ECZ) gradually expands. As a result, an appropriate subsidy scheme is necessary to encourage shipping companies to apply emission reduction technologies.

Item Details

Item Type:Refereed Article
Keywords:shipping, marine policy, particulate matter, net present value, ship emissions
Research Division:Economics
Research Group:Applied economics
Research Field:Transport economics
Objective Division:Defence
Objective Group:Defence
Objective Field:Logistics
UTAS Author:Shi, W (Dr Wenming Shi)
ID Code:121670
Year Published:2017
Web of Science® Times Cited:19
Deposited By:Maritime and Logistics Management
Deposited On:2017-10-10
Last Modified:2022-08-22

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