How does emission allowance allocation affect shipowners’ selection of emission reduction technologies?

IF 7.3 1区工程技术 Q1 ENVIRONMENTAL STUDIES Transportation Research Part D-transport and Environment Pub Date : 2025-02-01 DOI:10.1016/j.trd.2024.104573

Ruqi Zhou , Meifeng Luo , Changmin Jiang , Dong Yang , Kun Wang

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引用次数: 0

Abstract

The Emission Trading Scheme (ETS) typically allocates free emission allowances through Grandfathering or Benchmarking. However, since 2024, international shipping has not benefited from free allocation in EU ETS. Limited research exists on the implication of this change compared to typical free allocation policies. Shipowners now face the challenge of balancing abatement costs by adjusting speeds and selecting emission reduction technologies to maximize profits. This research employs economic models and simulations to compare policies' effects on shipowners' decisions. Findings reveal that Grandfathering based on historical emissions effectively reduces emissions but may hinder the adoption of efficient emission reduction technology at certain allowance price levels. Benchmarking, linked to current output, promotes the technology adoption but is less emission-efficient than Grandfathering. Non-free allocation in EU ETS, while cost-neutral for technology adoption, impedes the adoption of costlier, low-carbon technologies. This research demonstrates that adaptive policymaking is critical in evolving markets and technology landscape.

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来源期刊

Transportation Research Part D-transport and Environment 工程技术-运输科技

CiteScore

14.40

自引率

9.20%

发文量

314

审稿时长

39 days

期刊介绍： Transportation Research Part D: Transport and Environment focuses on original research exploring the environmental impacts of transportation, policy responses to these impacts, and their implications for transportation system design, planning, and management. The journal comprehensively covers the interaction between transportation and the environment, ranging from local effects on specific geographical areas to global implications such as natural resource depletion and atmospheric pollution. We welcome research papers across all transportation modes, including maritime, air, and land transportation, assessing their environmental impacts broadly. Papers addressing both mobile aspects and transportation infrastructure are considered. The journal prioritizes empirical findings and policy responses of regulatory, planning, technical, or fiscal nature. Articles are policy-driven, accessible, and applicable to readers from diverse disciplines, emphasizing relevance and practicality. We encourage interdisciplinary submissions and welcome contributions from economically developing and advanced countries alike, reflecting our international orientation.