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Speed Optimization vs Speed Reduction: the Choice between Speed Limits and a Bunker Levy

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  • Harilaos N. Psaraftis

    (DTU Management, Technical University of Denmark, 2800 Lyngby, Denmark)

Abstract

“Speed optimization and speed reduction” are included in the set of candidate short-term measures under discussion at the International Maritime Organization (IMO), in the quest to reduce greenhouse gas (GHG) emissions from ships. However, there is much confusion on what either speed optimization or speed reduction may mean, and some stakeholders have proposed mandatory speed limits as a measure to achieve GHG emissions reduction. The purpose of this paper is to shed some light into this debate, and specifically examine whether reducing speed by imposing a speed limit is better than doing the same by imposing a bunker levy. To that effect, the two options are compared. The main result of the paper is that the speed limit option exhibits a number of deficiencies as an instrument to reduce GHG emissions, at least vis-à-vis the bunker levy option.

Suggested Citation

  • Harilaos N. Psaraftis, 2019. "Speed Optimization vs Speed Reduction: the Choice between Speed Limits and a Bunker Levy," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:8:p:2249-:d:222759
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    References listed on IDEAS

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    1. Thalis Zis & Robin Jacob North & Panagiotis Angeloudis & Washington Yotto Ochieng & Michael Geoffrey Harrison Bell, 2014. "Evaluation of cold ironing and speed reduction policies to reduce ship emissions near and at ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 16(4), pages 371-398, December.
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    3. Harilaos N. Psaraftis & Christos A. Kontovas, 2015. "Slow Steaming in Maritime Transportation: Fundamentals, Trade-offs, and Decision Models," International Series in Operations Research & Management Science, in: Chung-Yee Lee & Qiang Meng (ed.), Handbook of Ocean Container Transport Logistics, edition 127, chapter 11, pages 315-358, Springer.
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    5. Magirou, Evangelos F. & Psaraftis, Harilaos N. & Bouritas, Theodore, 2015. "The economic speed of an oceangoing vessel in a dynamic setting," Transportation Research Part B: Methodological, Elsevier, vol. 76(C), pages 48-67.
    6. Stefanos D. Chatzinikolaou & Nikolaos P. Ventikos, 2016. "Critical Analysis of Air Emissions from Ships: Lifecycle Thinking and Results," International Series in Operations Research & Management Science, in: Harilaos N. Psaraftis (ed.), Green Transportation Logistics, edition 127, chapter 0, pages 387-412, Springer.
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    Cited by:

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    2. Nestor Goicoechea & Luis María Abadie, 2021. "Optimal Slow Steaming Speed for Container Ships under the EU Emission Trading System," Energies, MDPI, vol. 14(22), pages 1-25, November.
    3. Dan Zhuge & Shuaian Wang & Lu Zhen & Gilbert Laporte, 2021. "Subsidy design in a vessel speed reduction incentive program under government policies," Naval Research Logistics (NRL), John Wiley & Sons, vol. 68(3), pages 344-358, April.
    4. Beullens, Patrick & Ge, Fangsheng & Hudson, Dominic, 2023. "The economic ship speed under time charter contract—A cash flow approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    5. Tayfun Uyanık & Yunus Yalman & Özcan Kalenderli & Yasin Arslanoğlu & Yacine Terriche & Chun-Lien Su & Josep M. Guerrero, 2022. "Data-Driven Approach for Estimating Power and Fuel Consumption of Ship: A Case of Container Vessel," Mathematics, MDPI, vol. 10(22), pages 1-21, November.
    6. Xi Jiang & Haijun Mao & Yadong Wang & Hao Zhang, 2020. "Liner Shipping Schedule Design for Near-Sea Routes Considering Big Customers’ Preferences on Ship Arrival Time," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    7. Xing, Hui & Spence, Stephen & Chen, Hua, 2020. "A comprehensive review on countermeasures for CO2 emissions from ships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    8. Maksymilian Mądziel, 2023. "Future Cities Carbon Emission Models: Hybrid Vehicle Emission Modelling for Low-Emission Zones," Energies, MDPI, vol. 16(19), pages 1-16, October.
    9. Harilaos N. Psaraftis & Christos A. Kontovas, 2020. "Influence and transparency at the IMO: the name of the game," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(2), pages 151-172, June.
    10. Chao-Feng Gao & Zhi-Hua Hu, 2021. "Speed Optimization for Container Ship Fleet Deployment Considering Fuel Consumption," Sustainability, MDPI, vol. 13(9), pages 1-18, May.
    11. Liqian Yang & Gang Chen & Jinlou Zhao & Niels Gorm Malý Rytter, 2020. "Ship Speed Optimization Considering Ocean Currents to Enhance Environmental Sustainability in Maritime Shipping," Sustainability, MDPI, vol. 12(9), pages 1-24, May.
    12. Adland, Roar & Cariou, Pierre & Wolff, Francois-Charles, 2020. "Optimal ship speed and the cubic law revisited: Empirical evidence from an oil tanker fleet," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    13. Ge, Fangsheng & Beullens, Patrick & Hudson, Dominic, 2021. "Optimal economic ship speeds, the chain effect, and future profit potential," Transportation Research Part B: Methodological, Elsevier, vol. 147(C), pages 168-196.
    14. Hui-Huang Tai & Yun-Hua Chang, 2022. "Reducing pollutant emissions from vessel maneuvering in port areas," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(3), pages 651-671, September.
    15. Monica Grosso & Fabio Luis Marques dos Santos & Konstantinos Gkoumas & Marcin Stępniak & Ferenc Pekár, 2021. "The Role of Research and Innovation in Europe for the Decarbonisation of Waterborne Transport," Sustainability, MDPI, vol. 13(18), pages 1-21, September.
    16. Harilaos N. Psaraftis & Thalis Zis, 2021. "Impact assessment of a mandatory operational goal-based short-term measure to reduce GHG emissions from ships: the LDC/SIDS case study," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 445-467, September.

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