IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v376y2024ipbs0306261924016349.html
   My bibliography  Save this article

Decarbonizing the inland container fleet with carbon cap-and-trade scheme

Author

Listed:
  • Tan, Zhijia
  • Shao, Shuai
  • Zhang, Di
  • Shang, Wen-Long
  • Ochieng, Washington
  • Han, Yi

Abstract

Market-based measures, like the carbon cap-and-trade (CCT) scheme, can effectively reduce emissions and promote green technology by internalizing the external costs in the shipping industry. Under the CCT scheme, the government sets the quantity commitment of carbon emissions for a unit of shipping work, and the excessive quantity must be traded from the inner shipping market. To cope with carbon regulation, carriers can adjust their ship deployment plan and adopt new engine technologies to support low-carbon fuels. This paper proposes a bi-level programming model to investigate the effects of the CCT scheme on the decisions of carriers in a competitive inland container shipping network. At the upper level, carriers adjust their own ship deployment plan and the choice of technology and fuel type. At the lower level, the shippers between different origins and destinations choose the shipping lines with the given ship deployment plans of carriers. Two kinds of equilibrium are considered in the proposed problem: the competitive equilibrium of carriers on freight shipment in the inland shipping network and the trading equilibrium of carbon quotas. The former equilibrium can be captured by a traffic assignment model in a similar transit transportation network, and the latter equilibrium follows the idea of the demand–supply equilibrium of carbon quotas in the traditional market. The two equilibria interact since the freight distribution affects the shipping revenue of each ship and the trading equilibrium is related to the total cost of the ship. The properties of the optimal choice of technology and fuel type are theoretically studied. We find that the optimal choice of fuel technology for each ship assigned to any shipping line at any given CCT must be Pareto optimal in the sense of cost-related and emission-relative measures. Based on the result, the optimal solution of the proposed model can be calculated by a sampling-based method. Numerical examples based on the Yangtze River are further adopted to illustrate the proposed model and conclusions.

Suggested Citation

  • Tan, Zhijia & Shao, Shuai & Zhang, Di & Shang, Wen-Long & Ochieng, Washington & Han, Yi, 2024. "Decarbonizing the inland container fleet with carbon cap-and-trade scheme," Applied Energy, Elsevier, vol. 376(PB).
    • Handle: RePEc:eee:appene:v:376:y:2024:i:pb:s0306261924016349
    DOI: 10.1016/j.apenergy.2024.124251
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261924016349
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2024.124251?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:376:y:2024:i:pb:s0306261924016349. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.