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Article
Publication date: 30 June 2016

Maxim A. Dulebenets

Emissions produced by oceangoing vessels not only negatively affect the environment but also may deteriorate health of living organisms. Several regulations were released by the…

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Abstract

Purpose

Emissions produced by oceangoing vessels not only negatively affect the environment but also may deteriorate health of living organisms. Several regulations were released by the International Maritime Organization (IMO) to alleviate negative externalities from maritime transportation. Certain polluted areas were designated as “Emission Control Areas” (ECAs). However, IMO did not enforce any restrictions on the actual quantity of emissions that could be produced within ECAs. This paper aims to perform a comprehensive assessment of advantages and disadvantages from introducing restrictions on the emissions produced within ECAs. Two mixed-integer non-linear mathematical programs are presented to model the existing IMO regulations and an alternative policy, which along with the established IMO requirements also enforces restrictions on the quantity of emissions produced within ECAs. A set of linearization techniques are applied to linearize both models, which are further solved using the dynamic secant approximation procedure. Numerical experiments demonstrate that introduction of emission restrictions within ECAs can significantly reduce pollution levels but may incur increasing route service cost for the liner shipping company.

Design/methodology/approach

Two mixed-integer non-linear mathematical programs are presented to model the existing IMO regulations and an alternative policy, which along with the established IMO requirements also enforces restrictions on the quantity of emissions produced within ECAs. A set of linearization techniques are applied to linearize both models, which are further solved using the dynamic secant approximation procedure.

Findings

Numerical experiments were conducted for the French Asia Line 3 route, served by CMA CGM liner shipping company and passing through ECAs with sulfur oxide control. It was found that introduction of emission restrictions reduced the quantity of sulfur dioxide emissions produced by 40.4 per cent. In the meantime, emission restrictions required the liner shipping company to decrease the vessel sailing speed not only at voyage legs within ECAs but also at the adjacent voyage legs, which increased the total vessel turnaround time and in turn increased the total route service cost by 7.8 per cent.

Research limitations/implications

This study does not capture uncertainty in liner shipping operations.

Practical implications

The developed mathematical model can serve as an efficient practical tool for liner shipping companies in developing green vessel schedules, enhancing energy efficiency and improving environmental sustainability.

Originality/value

Researchers and practitioners seek for new mathematical models and environmental policies that may alleviate pollution from oceangoing vessels and improve energy efficiency. This study proposes two novel mathematical models for the green vessel scheduling problem in a liner shipping route with ECAs. The first model is based on the existing IMO regulations, whereas the second one along with the established IMO requirements enforces emission restrictions within ECAs. Extensive numerical experiments are performed to assess advantages and disadvantages from introducing emission restrictions within ECAs.

Content available
Article
Publication date: 29 March 2019

Anastasia Christodoulou, Marta Gonzalez-Aregall, Tobias Linde, Inge Vierth and Kevin Cullinane

The purpose of this paper is to identify and classify the various initiatives developed and implemented across the globe for the abatement of maritime air emissions.

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Abstract

Purpose

The purpose of this paper is to identify and classify the various initiatives developed and implemented across the globe for the abatement of maritime air emissions.

Design/methodology/approach

In this paper, an extensive survey of various sources was conducted, including the official reports of international and regional institutions, government policy documents, port authority websites, classification society pages, private firms’ sites and the academic literature. The initiatives were then categorized in accordance with the classification of the Swedish Environmental Protection Agency and analyzed using the SPSS Statistics software to give some insight into their frequencies and the interrelationships between them.

Findings

This exploratory review resulted in the establishment of a comprehensive global database of initiatives encouraged by the whole range of shipping stakeholders and decision-makers for the reduction of shipping air emissions. According to the findings, economic incentives that provide motivation for the adoption of less environmentally damaging practices are the most commonly used initiative, followed by infrastructure investments and informative policies.

Research limitations/implications

The results provide implications for further research that include an in-depth analysis of ports’ policies, as well as an evaluation of initiatives applied on a large scale to map their emissions reduction potential for shipping.

Originality/value

The main contribution of this paper is the identification and analysis of all the diverse initiatives implemented globally in a comprehensive way and its dealing with air pollution from shipping as a whole.

Details

Maritime Business Review, vol. 4 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 8 March 2021

Vasiliki Zisi, Harilaos N. Psaraftis and Thalis Zis

As of January 1, 2020, the upper limit of sulfur emissions outside emission control areas decreased from 3.5% to 0.5%. This paper aims to present some of the challenges associated…

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Abstract

Purpose

As of January 1, 2020, the upper limit of sulfur emissions outside emission control areas decreased from 3.5% to 0.5%. This paper aims to present some of the challenges associated with the implementation of the sulfur cap and investigates its possible side effects as regard the drive of the International Maritime Organization (IMO) to reduce carbon dioxide (CO2) emissions. Even though it would appear that the two issues (desulfurization and decarbonization) are unrelated, it turns out that there are important cross-linkages between them, which have not been examined, at least by the regulators.

Design/methodology/approach

A literature review and a qualitative risk assessment of possible CO2 contributors are presented first. A cost-benefit analysis is then conducted on a specific case study, so as to assess the financial, as well as the environmental impact of two main compliance choices, in terms of CO2 and sulfur oxide.

Findings

From a financial perspective, the choice of a scrubber ranks better comparing to a marine gas oil (MGO) choice because of the price difference between MGO and heavy fuel oil. However, and under different price scenarios, the scrubber choice remains sustainable only for big vessels. It is noticed that small containerships cannot outweigh the capital cost of a scrubber investment and are more sensitive in different fuel price scenarios. From an environmental perspective, scrubber ranks better than MGO in the assessment of overall emissions.

Research limitations/implications

Fuel price data in this paper was based on 2019 data. As this paper was being written, the COVID-19 pandemic created a significant upheaval in global trade flows, cargo demand and fuel prices. This made any attempt to perform even a rudimentary ex-post evaluation of the 2020 sulfur cap virtually impossible. Due to limited data, such an evaluation would be extremely difficult even under normal circumstances. This paper nevertheless made a brief analysis to investigate possible COVID-19 impacts.

Practical implications

The main implication is that the global sulfur cap will increase CO2 emissions. In that sense, this should be factored in the IMO greenhouse gas discussion.

Originality/value

According to the knowledge of the authors, no analysis examining the impact of the 2020 sulfur cap on CO2 emissions has yet been conducted in the scientific literature.

Content available
Article
Publication date: 16 April 2019

Inge Vierth, Rune Karlsson, Tobias Linde and Kevin Cullinane

For the case of Sweden, this paper aims to determine how a range of different infrastructure fees and taxes influences modal split, port throughputs, air emissions, societal costs…

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Abstract

Purpose

For the case of Sweden, this paper aims to determine how a range of different infrastructure fees and taxes influences modal split, port throughputs, air emissions, societal costs of greenhouse gas (GHG) emissions and air pollution, as well as logistics costs.

Design/methodology/approach

The Swedish national freight model is used to simulate a range of different proposed infrastructure fees, one by one and in combination. The volume of emissions of CO2-equivalents, NOx, SOx and PM under the different scenarios is calculated in both volume and monetary terms, by applying national emission factors and EU values for external costs.

Findings

Road user fees are calculated to have the largest impact on the modal split, GHG emissions and air pollution. The impact increases slightly when road user fees are combined with higher fees for sea and rail and/or gate fees in all Swedish ports. The imposition of gate fees over €30 per truck in all ports leads to shifts in cargo to land-based modes and to ports outside Sweden. The logistics costs in Sweden are found to be three to ten times higher than the benefits of reduced GHG emissions and air pollution, although other benefits to society need to be considered as well.

Research limitations/implications

Methods which attempt to evaluate alternative approaches to the internalisation of the external costs caused by transport need to be further developed. In particular, they need to encompass a more holistic perspective on “benefits to society”, other than merely reductions in GHG emissions and air pollution. To facilitate international acceptance and adoption, such methods require agreements to be reached on common definitions and routines.

Practical implications

The results can be used as basis for policy-making. They illustrate the environmental impacts of the fees and taxes one by one and in combination and to what extent these reinforce each other and should be co-ordinated.

Social implications

The outcomes are relevant to national and international policymakers and authorities, as well as port authorities, shippers and transport companies who need to determine unilateral strategies on how to reduce GHG emissions and air pollution, without undermining their wider business objectives.

Originality/value

The approach is original in facilitating the testing of policies which impact on the transport system and the environment across different dimensions. The work has additional value in informing policy because of its use of Sweden’s national freight transport model.

Details

Maritime Business Review, vol. 4 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 3 September 2019

Shuaian Wang and Chuansheng Peng

The purpose of this study is to analyze the effect of China’s potential domestic emission control area (DECA) with 0.1 per cent sulphur limit on sulphur emission reduction.

Abstract

Purpose

The purpose of this study is to analyze the effect of China’s potential domestic emission control area (DECA) with 0.1 per cent sulphur limit on sulphur emission reduction.

Design/methodology/approach

The authors calculate the fuel cost of a direct path within the DECA and a path that bypasses the DECA for ships that sail between two Chinese ports in view of the DECA. Ships adopt the path with the lower cost and the resulting sulphur dioxide (SO2) emissions can be calculated. They then conduct sensitivity analysis of the SO2 emissions with different values of the parameters related to sailing distance, fuel price and ships.

Findings

The results show that ships tend to detour to bypass the DECA when the distance between the two ports is long, the ratio of the price of low sulphur fuel and that of high sulphur fuel is high and the required time for fuel switching is long. If the time required for fuel switching is less than 12 h or even 24 h, it can be anticipated that a large number of ships will bypass the DECA, undermining the SO2 reduction effect of the DECA.

Originality/value

This study points out the size and shape difference between the emission control areas in Europe and North America and China’s DECA affects ships’ path choice and SO2 emissions.

Details

Maritime Business Review, vol. 4 no. 3
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
Article
Publication date: 19 December 2023

Tamara Apostolou, Ioannis N. Lagoudis and Ioannis N. Theotokas

This paper aims to identify the interplay of standard Capesize optimal speeds for time charter equivalent (TCE) maximization in the Australia–China iron ore route and the optimal…

Abstract

Purpose

This paper aims to identify the interplay of standard Capesize optimal speeds for time charter equivalent (TCE) maximization in the Australia–China iron ore route and the optimal speeds as an operational tool for compliance with the International Maritime Organization (IMO) carbon intensity indicator (CII).

Design/methodology/approach

The TCE at different speeds have been calculated for four standard Capesize specifications: (1) standard Capesize with ecoelectronic engine; (2) standard Capesize with non-eco engine (3) standard Capesize vessel with an eco-electronic engine fitted with scrubber and (4) standard Capesize with non-eco engine and no scrubber fitted.

Findings

Calculations imply that in a highly inflationary bunker price context, the dollar per ton freight rates equilibrates at levels that may push optimal speeds below the speeds required for minimum CII compliance (C Rating) in the Australia–China trade. The highest deviation of optimal speeds from those required for minimum CII compliance is observed for non-eco standard Capesize vessels without scrubbers. Increased non-eco Capesize deployment would see optimal speeds structurally lower at levels that could offer CII ratings improvements.

Originality/value

While most of the studies have covered the use of speed as a tool to improve efficiency and emissions in the maritime sector, few have been identified in the literature to have examined the interplay between the commercial and operational performance in the dry bulk sector stemming from the freight market equilibrium. The originality of this paper lies in examining the above relation and the resulting optimal speed selection in the Capesize sector against mandatory environmental targets.

Details

Maritime Business Review, vol. 9 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

Open Access
Article
Publication date: 9 April 2024

Lilian Gheyathaldin Salih

This study investigated the visibility of carbon emissions allowances accounting in the financial reports of 32 clean development mechanism (CDM) projects in the UAE to uncover…

Abstract

Purpose

This study investigated the visibility of carbon emissions allowances accounting in the financial reports of 32 clean development mechanism (CDM) projects in the UAE to uncover the obstacles to setting consistent standards for carbon emission accounting. As carbon emissions are monetized as credits, consistent accounting standards can aid decision-makers in the development of carbon emission mitigation strategies.

Design/methodology/approach

This study used a grounded theoretical framework for exploring the terms used in the policy documents of international accounting bodies regarding accounting standards and guidelines for carbon emission credits. Raw qualitative data were gathered, and an inductive approach was used by analyzing documents from various sources using the qualitative data text analysis software QDA Miner 6.

Findings

The findings showed that the financial statement reports of the corporations did not include disclosure of the carbon credit account. This omission was due to the lack of global standardization of carbon credit accounts and emission allowance recognition. This may hinder the production of a comprehensive report containing accurate and valuable financial information relevant to all stakeholders.

Originality/value

The study is among the first to use a grounded theoretical framework to investigate whether corporations are applying common standards and guidelines for carbon emissions accounting.

Details

Asian Journal of Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2459-9700

Keywords

Content available
Article
Publication date: 29 September 2023

Maneerat Kanrak, Yui-yip Lau, Xavier Ling and Saksuriya Traiyarach

The rapid growth in cruise shipping coupled with increasing public awareness of climate change has led to increasing concerns about the impact cruise shipping poses on the…

Abstract

Purpose

The rapid growth in cruise shipping coupled with increasing public awareness of climate change has led to increasing concerns about the impact cruise shipping poses on the environment, especially regarding air emissions. This study analyses the cruise shipping network of ports in and around the emission control areas (ECAs) to understand the structural properties of the network and ports.

Design/methodology/approach

A complex network approach was used to analyse the network data of 239 voyages serviced by 14 international cruise lines, visiting 127 ports across 44 countries in the Caribbean Sea.

Findings

It is found that the network has a small-world property with a short average path length and a high clustering coefficient. The regulations affect connections among ports, in which most ports in ECAs have lower connections than ports outside ECAs. A few ports in ECAs play important key roles, but many ports outside ECAs play a more important role in the network because the regulations are barriers for cruise ships entering the ports.

Originality/value

The findings of this study have drawn useful guidelines for cruise lines and port authorities to improve their operations. Constrictive recommendations are suggested to policymakers for designing reasonable regulations to attract more cruise shipping to travel in ECAs.

Details

Maritime Business Review, vol. 8 no. 4
Type: Research Article
ISSN: 2397-3757

Keywords

Open Access
Article
Publication date: 25 March 2024

Tiago Ferreira Barcelos and Kaio Glauber Vital Costa

This study aims to analyze and compare the relationship between international trade in global value chains (GVC) and greenhouse gas (GHG) emissions for Brazil and China from 2000…

Abstract

Purpose

This study aims to analyze and compare the relationship between international trade in global value chains (GVC) and greenhouse gas (GHG) emissions for Brazil and China from 2000 to 2016.

Design/methodology/approach

The input-output method apply to multiregional tables from Eora-26 to decompose the GHG emissions of the Brazilian and Chinese productive structure.

Findings

The data reveals that Chinese production and consumption emissions are associated with power generation and energy-intensive industries, a significant concern among national and international policymakers. For Brazil, the largest territorial emissions captured by the metrics come from services and traditional industry, which reveals room for improving energy efficiency. The analysis sought to emphasize how the productive structure and dynamics of international trade have repercussions on the environmental dimension, to promote arguments that guide the execution of a more sustainable, productive and commercial development strategy and offer inputs to advance discussions on the attribution of climate responsibility.

Research limitations/implications

The metrics did not capture emissions related to land use and deforestation, which are representative of Brazilian emissions.

Originality/value

Comparative analysis of emissions embodied in traditional sectoral trade flows and GVC, on backward and forward sides, for developing countries with the main economic regions of the world.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Open Access
Article
Publication date: 19 March 2024

Mazignada Sika Limazie and Soumaïla Woni

The present study investigates the effect of foreign direct investment (FDI) and governance quality on carbon emissions in the Economics Community of West African States (ECOWAS).

Abstract

Purpose

The present study investigates the effect of foreign direct investment (FDI) and governance quality on carbon emissions in the Economics Community of West African States (ECOWAS).

Design/methodology/approach

To achieve the objective of this research, panel data for dependent and explanatory variables over the period 2005–2016, collected in the World Development Indicators (WDI) database and World Governance Indicators (WGI), are analyzed using the generalized method of moments (GMM). Also, the panel-corrected standard errors (PCSE) method is applied to the four segments of the overall sample to analyze the stability of the results.

Findings

The findings of this study are: (1) FDI inflows have a negative effect on carbon emissions in ECOWAS and (2) The interaction between FDI inflows and governance quality have a negative effect on carbon emissions. These results show the decreasing of environmental damage by increasing institutional quality. However, the estimation results on the country subsamples show similar and non-similar aspects.

Practical implications

This study suggests that policymakers in the ECOWAS countries should strengthen their environmental policies while encouraging FDI flows to be environmentally friendly.

Originality/value

The subject has rarely been explored in West Africa, with gaps such as the lack of use of institutional variables. This study contributes to the literature by drawing on previous work to examine the role of good governance on FDI and the CO2 emission relationship in the ECOWAS, which have received little attention. However, this research differs from previous work by subdividing the overall sample into four groups to test the stability of the results.

Details

Journal of Economics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1859-0020

Keywords

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