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Optimized selection of vessel air emission controls--moving beyond cost-efficiency

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  • Océane Balland
  • Cecilia Girard
  • Stein Ove Erikstad
  • Kjetil Fagerholt

Abstract

Shipping currently has an unexploited potential for improved energy efficiency and reduced emissions to air. Many existing air emission controls have been proved to be cost-efficient but are still not commonly installed on board vessels. This paper discusses the so-called 'energy paradox' in maritime transportation, presenting barriers to overcome and criteria to consider when selecting cost-efficient air emission controls. Current approaches typically select available controls based on their cost-effectiveness. While this is an important aid in the decision-making process, and, in relative terms, easy to quantify, it is not a sufficient criterion to capture the true preferences of the decision-maker. We present in this paper a multi-criteria optimization model for the selection of air emission controls. This decision framework can also incorporate subjective and qualitative factors, and is applied to the shipping company Grieg Shipping. A survey among internal Grieg Shipping stakeholders identifies the important criteria to consider, their relative importance, and the scoring of the controls. This empirical data is used as parameters in the model and the model is then applied on a vessel of the Grieg Shipping fleet. The results show that nonfinancial factors play an important role in the selection of air emission controls in shipping.

Suggested Citation

  • Océane Balland & Cecilia Girard & Stein Ove Erikstad & Kjetil Fagerholt, 2015. "Optimized selection of vessel air emission controls--moving beyond cost-efficiency," Maritime Policy & Management, Taylor & Francis Journals, vol. 42(4), pages 362-376, May.
    • Handle: RePEc:taf:marpmg:v:42:y:2015:i:4:p:362-376
    DOI: 10.1080/03088839.2013.872311
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    2. Bai, Xiwen & Hou, Yao & Yang, Dong, 2021. "Choose clean energy or green technology? Empirical evidence from global ships," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    3. Qinghe Sun & Li Chen & Mabel C. Chou & Qiang Meng, 2023. "Mitigating the financial risk behind emission cap compliance: A case in maritime transportation," Production and Operations Management, Production and Operations Management Society, vol. 32(1), pages 283-300, January.
    4. 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.
    5. Gong, Xu & Li, Zhi-Chun, 2022. "Determination of subsidy and emission control coverage under competition and cooperation of China-Europe Railway Express and liner shipping," Transport Policy, Elsevier, vol. 125(C), pages 323-335.

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