Incentive policy for reduction of emission from ships: A case study of China |
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| Institution: | 1. College of Transportation and Communication, Shanghai Maritime University, Shanghai, China;2. Department of International Logistics, Chung-Ang University, Seoul, Republic of Korea;3. Maritime and Logistics Management, National Centre for Ports and Shipping, Australian Maritime College, University of Tasmania, Launceston, TAS 7250, Australia;4. Centre of Excellence in Maritime Energy and Sustainable Development, School of Civil and Environmental Engineering, Nanyang Technological University, Singapore;1. Fujian Province Key Laboratory of Naval Architecture and Marine Engineering, Xiamen, 361021, China;2. Department of Naval Architecture, Ocean and Marine Engineering, University of Strathclyde, Glasgow, G4 0LZ, UK;3. School of Marine Engineering, Jimei University, Xiamen, 361021, China;4. Ocean Engineering Faculty, Zhejiang University, Zhousan, 316021, China;1. Bandirma Onyedi Eylul University, Maritime Faculty, Bandirma, Balikesir, Turkey;2. Yildiz Technical University, Naval Architecture and Maritime Faculty, Besiktas, Istanbul, Turkey;1. Norwegian Marine Technology Research Institute (MARINTEK), Trondheim, Norway;2. United European Car Carriers (UECC), Oslo, Norway;3. Norwegian University of Science and Technology (NTNU), Trondheim, Norway;1. Key Laboratory of Beijing on Regional Air Pollution Control, Beijing University of Technology, Beijing 100124, PR China;2. Department of Environmental Sciences, Faculty of Science and Engineering, Macquarie University, NSW 2109, Australia;3. Transport Planning and Research Institute, Ministry of Transport, Beijing 100028, PR China |
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| Abstract: | 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 companies’ 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. |
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| Keywords: | Shipping Marine Policy Particulate matter Net present value Incentive scheme Ship emissions |
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