IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v148y2024icp60-78.html
   My bibliography  Save this article

Allocation and trading schemes of the maritime emissions trading system: Liner shipping route choice and carbon emissions

Author

Listed:
  • Sun, Yulong
  • Zheng, Jianfeng
  • Yang, Lingxiao
  • Li, Xia

Abstract

In September 2020, the European Union (EU) decided to include the maritime industry into the EU emissions trading system to effectively control carbon emissions from ships, namely the maritime emissions trading system (METS). Various allocation and trading schemes are adopted in practice. This paper investigates a comparison of allocation and trading schemes of the METS from the perspective of liner shipping carriers and regulators, respectively. We explore how to determine the optimal allocation and trading scheme of the METS and how the liner shipping route (LSR) choice decision (following or avoiding the METS) and carbon emissions will be affected. For liner shipping carriers, we use a mixed-integer linear programming model that aims to reduce carriers’ costs to formulate our problem. For regulators, we present a bi-level programming model that aims to reduce carbon emissions. In numerical experiments, we further analyze the impact of joining the METS on the scheme choice, LSR choice and emissions by considering the European Economic Area and the Red Sea being covered by the METS. Numerical experiments are provided to show the effectiveness of our proposed models.

Suggested Citation

  • Sun, Yulong & Zheng, Jianfeng & Yang, Lingxiao & Li, Xia, 2024. "Allocation and trading schemes of the maritime emissions trading system: Liner shipping route choice and carbon emissions," Transport Policy, Elsevier, vol. 148(C), pages 60-78.
    • Handle: RePEc:eee:trapol:v:148:y:2024:i:c:p:60-78
    DOI: 10.1016/j.tranpol.2023.12.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X23003499
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2023.12.021?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.

    References listed on IDEAS

    as
    1. Zhuge, Dan & Wang, Shuaian & Wang, David Z.W., 2021. "A joint liner ship path, speed and deployment problem under emission reduction measures," Transportation Research Part B: Methodological, Elsevier, vol. 144(C), pages 155-173.
    2. Shuaian Wang & Dan Zhuge & Lu Zhen & Chung-Yee Lee, 2021. "Liner Shipping Service Planning Under Sulfur Emission Regulations," Transportation Science, INFORMS, vol. 55(2), pages 491-509, March.
    3. Dong Yang & Ghim Ping Ong & Anthony Theng Heng Chin, 2014. "An exploratory study on the effect of trade data aggregation on international freight mode choice," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(3), pages 212-223, May.
    4. Chen, Shun & Zheng, Shiyuan & Sys, Christa, 2023. "Policies focusing on market-based measures towards shipping decarbonization: Designs, impacts and avenues for future research," Transport Policy, Elsevier, vol. 137(C), pages 109-124.
    5. Wang, Kun & Fu, Xiaowen & Luo, Meifeng, 2015. "Modeling the impacts of alternative emission trading schemes on international shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 35-49.
    6. Sotiria Lagouvardou & Harilaos N. Psaraftis & Thalis Zis, 2020. "A Literature Survey on Market-Based Measures for the Decarbonization of Shipping," Sustainability, MDPI, vol. 12(10), pages 1-23, May.
    7. Pierre Franc & Lisa Sutto, 2014. "Impact analysis on shipping lines and European ports of a cap- and-trade system on CO 2 emissions in maritime transport," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(1), pages 61-78, January.
    8. Koesler, Simon & Achtnicht, Martin & Köhler, Jonathan, 2015. "Course set for a cap? A case study among ship operators on a maritime ETS," Transport Policy, Elsevier, vol. 37(C), pages 20-30.
    9. Wang, Yadong & Wang, Shuaian, 2021. "Deploying, scheduling, and sequencing heterogeneous vessels in a liner container shipping route," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    10. Wang, Shuaian & Meng, Qiang, 2012. "Sailing speed optimization for container ships in a liner shipping network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 701-714.
    11. Meng, Qiang & Wang, Shuaian, 2011. "Liner shipping service network design with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 695-708, September.
    12. Hyangsook Lee & Kang-Dae Lee & Sangho Choo, 2016. "The Effects of the Emission Cost on Route Choices of International Container Ships," Mathematical Problems in Engineering, Hindawi, vol. 2016, pages 1-13, June.
    13. Chin, Anthony T.H. & Zhang, Peng, 2013. "Carbon emission allocation methods for the aviation sector," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 70-76.
    14. Glock, C. H. & Jaber, M. Y. & El Saadany, A., 2013. "Supply Chain Coordination with Emission Reduction Incentives," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57672, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    15. Dai, Wayne Lei & Fu, Xiaowen & Yip, Tsz Leung & Hu, Hao & Wang, Kun, 2018. "Emission charge and liner shipping network configuration – An economic investigation of the Asia-Europe route," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 291-305.
    16. Kashiha, Mona & Thill, Jean-Claude & Depken, Craig A., 2016. "Shipping route choice across geographies: Coastal vs. landlocked countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 1-14.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tan, Zhijia & Zhang, Ming & Shao, Shuai & Liang, Jinpeng & Sheng, Dian, 2022. "Evasion strategy for a coastal cargo ship with unpunctual arrival penalty under sulfur emission regulation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    2. Sheng, Dian & Li, Zhi-Chun & Fu, Xiaowen & Gillen, David, 2017. "Modeling the effects of unilateral and uniform emission regulations under shipping company and port competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 99-114.
    3. Asghari, Mohammad & Jaber, Mohamad Y. & Mirzapour Al-e-hashem, S.M.J., 2023. "Coordinating vessel recovery actions: Analysis of disruption management in a liner shipping service," European Journal of Operational Research, Elsevier, vol. 307(2), pages 627-644.
    4. Li, Yuwan & Yuen, Kum Fai & Zhou, Yusheng, 2024. "Risk assessment of achieving greenhouse gas emission reduction target in the maritime industry," Transport Policy, Elsevier, vol. 155(C), pages 29-46.
    5. Zhang, Ming & Zeng, Xianyang & Tan, Zhijia, 2024. "Joint decision of green technology adoption and sailing pattern for a coastal ship under ECAs," Transport Policy, Elsevier, vol. 146(C), pages 102-113.
    6. Zeng, Xianyang & Tan, Zhijia & Zhang, Ming & Wang, Tingsong, 2024. "Scrubber installation of inland container ships: Discrepancy between government and carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 186(C).
    7. Gu, Yewen & Wallace, Stein W. & Wang, Xin, 2018. "Can an Emission Trading Scheme really reduce CO2 emissions in the short term? Evidence from a maritime fleet composition and deployment model," Discussion Papers 2018/10, Norwegian School of Economics, Department of Business and Management Science.
    8. Xiangang Lan & Qin Tao & Xincheng Wu, 2023. "Liner-Shipping Network Design with Emission Control Areas: A Real Case Study," Sustainability, MDPI, vol. 15(4), pages 1-23, February.
    9. Tan, Zhijia & Zeng, Xianyang & Shao, Shuai & Chen, Jihong & Wang, Hua, 2022. "Scrubber installation and green fuel for inland river ships with non-identical streamflow," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    10. Wang, Hua & Wang, Shuaian & Meng, Qiang, 2014. "Simultaneous optimization of schedule coordination and cargo allocation for liner container shipping networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 261-273.
    11. Anastasia Christodoulou & Dimitrios Dalaklis & Aykut I. Ölçer & Peyman Ghaforian Masodzadeh, 2021. "Inclusion of Shipping in the EU-ETS: Assessing the Direct Costs for the Maritime Sector Using the MRV Data," Energies, MDPI, vol. 14(13), pages 1-20, June.
    12. Xuecheng Tian & Ran Yan & Jingwen Qi & Dan Zhuge & Hans Wang, 2022. "A Bi-Level Programming Model for China’s Marine Domestic Emission Control Area Design," Sustainability, MDPI, vol. 14(6), pages 1-15, March.
    13. Zhang, Yilin & Zhang, Anming & Wang, Kun & Zheng, Shiyuan & Yang, Hangjun & Hong, Junjie, 2023. "Impact of CR Express and intermodal freight transport competition on China-Europe Route: Emission and welfare implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 171(C).
    14. Wang, Mei-Ru & Li, Zhi-Chun & Fu, Xiaowen & Xiong, Yi, 2024. "Revenue-sharing in the alliance of inland river and sea carriers: Formulation and a case study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    15. Zheng, Shiyuan & Wang, Kun & Li, Zhi-Chun & Fu, Xiaowen & Chan, Felix T.S., 2021. "Subsidy or minimum requirement? Regulation of port adaptation investment under disaster ambiguity," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 457-481.
    16. Wang, Tingsong & Cheng, Peiyue & Zhen, Lu, 2023. "Green development of the maritime industry: Overview, perspectives, and future research opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    17. Sotiria Lagouvardou & Harilaos N. Psaraftis & Thalis Zis, 2020. "A Literature Survey on Market-Based Measures for the Decarbonization of Shipping," Sustainability, MDPI, vol. 12(10), pages 1-23, May.
    18. Yu, Jingjing & Tang, Guolei & Song, Xiangqun, 2022. "Collaboration of vessel speed optimization with berth allocation and quay crane assignment considering vessel service differentiation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    19. E. Zhang & Feng Chu & Shijin Wang & Ming Liu & Yang Sui, 2022. "Approximation approach for robust vessel fleet deployment problem with ambiguous demands," Journal of Combinatorial Optimization, Springer, vol. 44(4), pages 2180-2194, November.
    20. Zheng, Jianfeng & Zhang, Wenlong & Qi, Jingwen & Wang, Shuaian, 2019. "Canal effects on a liner hub location problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 230-247.

    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:trapol:v:148:y:2024:i:c:p:60-78. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/30473/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.