Author: Qi, Jingwen
Title: Government subsidy plan optimization and maritime operations management in shipping emission reduction
Advisors: Wang, Shuaian (LMS)
Degree: Ph.D.
Year: 2023
Subject: Shipping -- Environmental aspects
Ships -- Fuel -- Environmental aspects
Hong Kong Polytechnic University -- Dissertations
Department: Department of Logistics and Maritime Studies
Pages: xii, 114 pages : illustrations
Language: English
Abstract: Emission reduction and decarbonization are among top priorities in the maritime industry and have attracted extensive attentions. To achieve the ambitious goal of reducing the total ship emission volume to half of the 2008 levels by mid-century, more effective measures are on their way. Joint efforts of the government and the industry are indispensable for the transition to a clean-energy and low-emissions future of the shipping industry. In this thesis, we explore the problems faced by both the government and the industry under the trend of shipping emission reduction. Academic studies on related topics can provide specific and quantitative suggestions for different stakeholder in shipping and give guidance on how to maximization their own benefits. Meanwhile, existing literature leaves plenty room for in-depth research in this area. Therefore, this thesis aims to fill the research gap and investigate the subsidy plan optimization and operational problems faced by the government and industry under the trend of shipping emission reduction. This thesis consists of three studies.
Chapter 2 focuses on the subsidy design in the promotion of liquefied natural gas (LNG) as marine fuel. Alternative fuels have been recognized as a promising method to alleviate the air emission problem of the maritime industry. LNG, as one of the most promising alternative fuels in shipping, has attracted extensive attention, and government subsidies are extensively adopted to promote its application. We consider two-stage subsidy methods in this chapter and aim to find the optimal subsidy plan under different scenarios. Distinguished from previous studies, we obtain the analytical solution to the subsidy plan optimization model, which provides more details about the logic behind the relationship between the subsidy plan and the promotion effect. Influence of critical parameters are also analyzed, and the conclusions we obtain further explain the intuition.
Chapter 3 investigates the ship operation and allowance management plan optimization in liner shipping under maritime emission trading system. Maritime emission trading system (METS) has been discussed as a promising method to limit the global average temperature increase to 2°C compared to the pre-industrial level. However, the impact of METS on liner shipping companies, which are important players in shipping, has not been carefully investigated. To fill the research gap, a stochastic model was developed to optimize the ship operation and allowance management plan in liner shipping under METS. Ship deployment, sailing speed optimization and carbon allowance management were integrated into our model. Important characteristics of METS were also captured. Based on the problem structure, the model was then converted into a deterministic linear one. Various numerical experiments were conducted to validate the model and solution method proposed in this chapter. The results show the necessity for this study and the influence of the changing pattern of market carbon pricing on liner shipping route operations. Moreover, it is revealed that under certain scenarios, a heterogeneous fleet would be deployed to balance the bunker costs, chartering costs, and carbon costs of a liner shipping route.
Chapter 4 explores the ship deployment problem in liner shipping under operational sailing speed limit. To achieve the emission reduction goal set by the International Maritime Organization (IMO), more effective regulations are on their way. Sailing speed limits are a simple and plausible measure that has attracted IMO's attention. Meanwhile, the implementation of sailing speed limits will have direct impacts on ship deployment decisions of ship operators, and lead to higher operating costs. However, this issue has not been covered by existing literature. Thus, this chapter investigates the ship deployment problem in liner shipping under sailing speed limits. A mixed-integer nonlinear model is developed to describe the problem and then solved by a tailored solution method originally proposed. Numerical experiments were conducted to validate the model and solution method. Comparison between results from our model and traditional ship deployment model demonstrates the necessity of this study and shows the superiority of our model under different transport demand scenarios.
Rights: All rights reserved
Access: open access

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