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Green premium and the role of financial investors in sustainable investment in container shipping

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  • Jia, Haiying
  • Jiang, Liping
  • Azevedo, Paulo

Abstract

Sustainable investment in tangible shipping assets is important for understanding investor behaviour and promoting sustainable development in the industry and the global economy. This research presents a framework for empirically testing the existence of the “green premium” for eco-ships and the role of financial investors in containership investments. Real transaction data from over 2000 sales and purchases of containerships between 2005 and 2023 are utilized in this study. A Generalized Structural Equation Modelling is employed to investigate the relationship among variables, including vessel value, eco-ships, investor categories, age, size, and others. The finding confirms the presence of a green price premium for the second-hand container eco-ships. Furthermore, financial buyers, who typically act as lessors in the financial leasing of ships in the shipping industry, have shown a more pronounced inclination towards investing in container eco-ships compared to operating buyers.

Suggested Citation

  • Jia, Haiying & Jiang, Liping & Azevedo, Paulo, 2024. "Green premium and the role of financial investors in sustainable investment in container shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:transe:v:189:y:2024:i:c:s1366554524002497
    DOI: 10.1016/j.tre.2024.103658
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