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How to bridge the short-term measures to the Market Based Measure? Proposal of a new hybrid MBM based on a new standard in ship operation

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  • Ghaforian Masodzadeh, Peyman
  • Ölçer, Aykut I.
  • Ballini, Fabio
  • Christodoulou, Anastasia

Abstract

Over the past decade, the shipping industry has tried to reduce its carbon footprint; however, there have always been problems in enforcing and enacting energy regulations in shipping. By highlighting the complications in operational, technical, and data collection regulations, this study tries to offer solutions in the form of two hypotheses, first a new standard in ship operation and based on that a new hybrid MBM (Market Based Measure). The proposed ship operational standard and its indicator, operational KPI (O-KPI), aim to combine the energy management system in shipping companies with the operational measures onboard ships. A practical combination technique to combine this operational indicator (O-KPI) with technical index is recommended and the result is a new energy efficiency gauge which is the base for a novel hybrid MBM. The proposed MBM which is a differentiated levy shows how a bunker levy could be implemented smartly with more promising results. The functionality of the whole MBM mechanism is demonstrated through a hypothetical example. Finally, this study shows how the proposed mechanism could supplement the implementation of the short-term measures and bridge them to the most important medium-term measure which is MBM in shipping.

Suggested Citation

  • Ghaforian Masodzadeh, Peyman & Ölçer, Aykut I. & Ballini, Fabio & Christodoulou, Anastasia, 2022. "How to bridge the short-term measures to the Market Based Measure? Proposal of a new hybrid MBM based on a new standard in ship operation," Transport Policy, Elsevier, vol. 118(C), pages 123-142.
    • Handle: RePEc:eee:trapol:v:118:y:2022:i:c:p:123-142
    DOI: 10.1016/j.tranpol.2022.01.019
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    References listed on IDEAS

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