Reducing GHG mitigation costs in the shipping industry using the clean development mechanism

Abstract

Purpose

The Greehouse Gas (GHG) in the shipping industry has attracted increasing attention. One potential method to reduce the GHG mitigation cost is the Clean Development Mechanism (CDM). The purpose of this paper is to identify factors that may increase or hinder the CDM in the shipping industry and provide policy implications.

Design/methodology/approach

The paper is an extension and application of the methodology first published by Wang and Firestone in Energy for Sustainable Development. The gravity model in international trade theory is used. The econometric model is employed for the analysis.

Findings

Larger project endowment, higher government efficiency, high‐quality expertise and infrastructure may play roles in increasing CDM in the shipping industry. The promotion of small‐scale projects, upgrade of the infrastructure, assistance of technologies and knowledge overseas can help the shipping industry and small countries to attract more CDM.

Originality/value

The paper is among the first work to describe and analyze potential barriers for the international shipping industry to use the CDM. It also suggests a set of measures to address the policy options to promote CDM in the shipping industry and small developing countries.

Citation

Wang, H. (2010), "Reducing GHG mitigation costs in the shipping industry using the clean development mechanism", Management of Environmental Quality, Vol. 21 No. 4, pp. 452-463. https://doi.org/10.1108/14777831011049098