Highlights We identify the determinants of the owners’ abatement choice for newbuilding ships. Vessel type plays a critical role in the shipowners’ abatement solutions. The shipowners from different countries exhibit a unique abatement preference. The Sulfur Cap has triggered demand for scrubber but not alternative fuel. The influence of bunker cost for abatement solutions of new vessels is pretty weak.
Abstract Because of the long lifetime of newbuilding vessels, shipowners' emission abatement solutions will have a profound impact on the greening transition of the shipping industry. A multinominal logit model is developed to identify the key determinants that affect the shipowners' choice of the solutions. New findings include: (1) Alternative fuels (e.g. liquefied natural gas) are the most attractive choice for gas ships and pure car carriers; and dry bulk ships and crude tankers prefer to use low-sulfur fuels. (2) Singaporean and Japanese shipowners are more likely to adopt the alternative fuels. (3) The IMO 2020 cap has significantly affected shipowners’ preference for scrubbers but not for alternative fuels. It is well known that economic factors affecting a shipowner’s decisions include freight rate and bunker cost but these factors weakly influence the emission abatement solution choice for new ships. This research provides helpful insights for the policymaker to guide shipowners to invest in more eco-friendly vessels and assist various stakeholders in forming efficient decisions.
Investigating the determinants of shipowners’ emission abatement solutions for newbuilding vessels
2021-01-01
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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