Studies On Optimizing Ship Carbon Reduction Measures Under The Marine Emissions Trading Scheme

As global climate change has already had observable effects on theenvironment, greenhouse gases (GHG) from international shipping hasbecome an increasing concern to the whole world. Among several GHGemissions reduction measures, Emissions Trading Scheme is a moreflexible one. However, it is a challenge to design a Marine EmissionsTrading Scheme which can not only realize emissions reduction target butalso be accepted by shipping companies. In order to solve the problem,this article proposes a potential Marine Emissions Trading Scheme andresearches its influence on the annual profit and emissions reductionoptions of a ship.This article is organized as following. Firstly, this article analyzesalternative emissions reduction measures from the perspective oftechnology, operation and market, drawing out market-based measuresinfluences the choice on technical and operational measures of a ship.Moreover, after analyzing the characteristics of Emissions TradingScheme and Carbon Tax, this article concludes that Marine EmissionsTrading Scheme is a more promising market-based measure. Then, basedon the trend of international shipping emissions reduction and existingEmissions Trading Schemes, a potential Marine Emissions TradingScheme is proposed under which ship companies get CO2quotas throughfree of charge and auction. In addition, this article develops an iteratedgame model to help international shipping companies allocate quotasunder the total cap of CO2quotas. After that, this article choses installingwaste heat recovery system, using drag reducing coating and slowsteaming as alternative emissions reduction measures, researching the choice of a ship for highest profit when the Marine Emissions TradingScheme takes effect. Finally, this article carried out a case study, findingout the percentage of auction quotas only influences the annual profit of aship, more than its choice on technical and operational emissionsreduction measures.This paper proposes a potential Marine Emissions Trading Schemeand assesses its influence on the annual profit and emissions reductionoptions of a ship. The results of this study provide references forInternational Maritime Organization (IMO) to put forward a widelyacceptable Marine Emissions Trading Scheme. Moreover, this paperfirstly from the perspective of ship companies to help them chose themost profitable emissions reduction measures when there is such amandatory emissions reduction scheme.