IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v26y2024i12d10.1007_s10668-023-03991-7.html
   My bibliography  Save this article

Investment preference for either technical or operational energy efficiency measures to achieve sustainable maritime shipping

Author

Listed:
  • Ángeles Longarela-Ares

    (Universidade da Coruña)

  • Anxo Calvo-Silvosa

    (Universidade da Coruña)

  • José-Benito Pérez-López

    (Universidade da Coruña)

Abstract

The reduction in energy consumption in shipping is a crucial issue to achieve a more sustainable sector. Nevertheless, investments in energy efficiency are inhibited by barriers. Consequently, under a Principal-Agent approach, this study aims to analyze the factors affecting the investment preference for either technical or operational measures. To date, the research problem has barely been addressed from a similar approach. This work further integrates agency theory with the identification of barriers and drivers, as well as the cost–benefit ratio from both an environmental and a financial perspective. This makes it possible to consider shipping management from a more comprehensive perspective. The study sample is current and representative (658 individual bulk carriers). The research was carried out utilizing two binominal logistic models that provide similar results when testing the proposed hypotheses. The outcomes show that regulatory factors, such as the distance of a vessel’s technical emissions from EEDI requirements (standardized coefficients: −2.8352 and −2.5069), and Principal-Agent problems, such as split incentives (standardized coefficients: −1.0059 and −0.9828), have the greatest influence on investment preferences. As a consequence of Principal-Agent problems, vessels operating under Time Charter contracts are less likely to invest in technical measures than in operational ones. Verified information and activity promote technical measures. Maritime regulation promotes technical measures in younger vessels, especially those meeting only the minimum requirements. Better knowledge can help achieve a more environmentally responsible shipping sector. The role of shipowners and charterers should be highlighted, and transparency should be promoted to enable well-informed decisions to be made.

Suggested Citation

  • Ángeles Longarela-Ares & Anxo Calvo-Silvosa & José-Benito Pérez-López, 2024. "Investment preference for either technical or operational energy efficiency measures to achieve sustainable maritime shipping," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 30723-30747, December.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:12:d:10.1007_s10668-023-03991-7
    DOI: 10.1007/s10668-023-03991-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-03991-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-023-03991-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Vernon, David & Meier, Alan, 2012. "Identification and quantification of principal–agent problems affecting energy efficiency investments and use decisions in the trucking industry," Energy Policy, Elsevier, vol. 49(C), pages 266-273.
    2. Brown, Marilyn A., 2001. "Market failures and barriers as a basis for clean energy policies," Energy Policy, Elsevier, vol. 29(14), pages 1197-1207, November.
    3. Nepomuceno de Oliveira, Maurício Aguilar & Szklo, Alexandre & Castelo Branco, David Alves, 2022. "Implementation of Maritime Transport Mitigation Measures according to their marginal abatement costs and their mitigation potentials," Energy Policy, Elsevier, vol. 160(C).
    4. Sina Abbasi & Babek Erdebilli, 2023. "Green Closed-Loop Supply Chain Networks’ Response to Various Carbon Policies during COVID-19," Sustainability, MDPI, vol. 15(4), pages 1-30, February.
    5. Spyros Arvanitis & Marius Ley, 2013. "Factors Determining the Adoption of Energy-Saving Technologies in Swiss Firms: An Analysis Based on Micro Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 389-417, March.
    6. Charlier, Dorothée, 2015. "Energy efficiency investments in the context of split incentives among French households," Energy Policy, Elsevier, vol. 87(C), pages 465-479.
    7. Erik Andreas Saether & Ann Elida Eide & Øyvind Bjørgum, 2021. "Sustainability among Norwegian maritime firms: Green strategy and innovation as mediators of long‐term orientation and emission reduction," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2382-2395, July.
    8. Rehmatulla, Nishatabbas & Smith, Tristan, 2015. "Barriers to energy efficiency in shipping: A triangulated approach to investigate the principal agent problem," Energy Policy, Elsevier, vol. 84(C), pages 44-57.
    9. Jafarzadeh, Sepideh & Utne, Ingrid Bouwer, 2014. "A framework to bridge the energy efficiency gap in shipping," Energy, Elsevier, vol. 69(C), pages 603-612.
    10. Assunta Di Vaio & Anum Zaffar & Daniel Balsalobre-Lorente & Antonio Garofalo, 2023. "Decarbonization technology responsibility to gender equality in the shipping industry: a systematic literature review and new avenues ahead," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-20, December.
    11. Yuan, Jun & Nian, Victor & He, Junliang & Yan, Wei, 2019. "Cost-effectiveness analysis of energy efficiency measures for maritime shipping using a metamodel based approach with different data sources," Energy, Elsevier, vol. 189(C).
    12. Per Joakim Agrell & Peter Bogetoft, 2017. "Decentralization Policies for Supply Chain Investments Under Asymmetric Information," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(3), pages 394-408, April.
    13. Abadie, Luis M. & Ortiz, Ramon A. & Galarraga, I., 2012. "Determinants of energy efficiency investments in the US," Energy Policy, Elsevier, vol. 45(C), pages 551-566.
    14. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    15. Rehmatulla, Nishatabbas & Smith, Tristan, 2020. "The impact of split incentives on energy efficiency technology investments in maritime transport," Energy Policy, Elsevier, vol. 147(C).
    16. Ángeles Longarela-Ares & Anxo Calvo-Silvosa & José-Benito Pérez-López, 2020. "The Influence of Economic Barriers and Drivers on Energy Efficiency Investments in Maritime Shipping, from the Perspective of the Principal-Agent Problem," Sustainability, MDPI, vol. 12(19), pages 1-42, September.
    17. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-139, May.
    18. Yuan, Jun & Ng, Szu Hui & Sou, Weng Sut, 2016. "Uncertainty quantification of CO2 emission reduction for maritime shipping," Energy Policy, Elsevier, vol. 88(C), pages 113-130.
    19. Sanstad, Alan H. & Howarth, Richard B., 1994. "`Normal' markets, market imperfections and energy efficiency," Energy Policy, Elsevier, vol. 22(10), pages 811-818, October.
    20. Di Vaio, Assunta & Varriale, Luisa & Alvino, Federico, 2018. "Key performance indicators for developing environmentally sustainable and energy efficient ports: Evidence from Italy," Energy Policy, Elsevier, vol. 122(C), pages 229-240.
    21. Trotta, Gianluca, 2018. "The determinants of energy efficient retrofit investments in the English residential sector," Energy Policy, Elsevier, vol. 120(C), pages 175-182.
    22. Alexandros Goulielmos, 2013. "An Econometric Analysis Of The Impact Of Vessel Size On Weekly Time Charters: A Study In Volatility (Panamax And Cape)," Articles, International Journal of Transport Economics, vol. 40(1).
    23. Xiaofang Wu & Luoping Zhang & Meifeng Luo, 2020. "Discerning sustainability approaches in shipping," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5169-5184, August.
    24. Rojon, Isabelle & Dieperink, Carel, 2014. "Blowin' in the wind? Drivers and barriers for the uptake of wind propulsion in international shipping," Energy Policy, Elsevier, vol. 67(C), pages 394-402.
    25. Dorothée Charlier, 2015. "Energy-efficiency investments in the context of split incentives among French households," Post-Print hal-03062649, HAL.
    26. Claudia Aravena & Andrés Riquelme & Eleanor Denny, 2016. "Money, Comfort or Environment? Priorities and Determinants of Energy Efficiency Investments in Irish Households," Journal of Consumer Policy, Springer, vol. 39(2), pages 159-186, June.
    27. Blumstein, Carl & Krieg, Betsy & Schipper, Lee & York, Carl, 1980. "Overcoming social and institutional barriers to energy conservation," Energy, Elsevier, vol. 5(4), pages 355-371.
    28. Reddy, Sudhakar & Painuly, J.P, 2004. "Diffusion of renewable energy technologies—barriers and stakeholders’ perspectives," Renewable Energy, Elsevier, vol. 29(9), pages 1431-1447.
    29. Wang, Xiaotong & Lu, Meijun & Mao, Wei & Ouyang, Jinlong & Zhou, Bo & Yang, Yunkai, 2015. "Improving benefit-cost analysis to overcome financing difficulties in promoting energy-efficient renovation of existing residential buildings in China," Applied Energy, Elsevier, vol. 141(C), pages 119-130.
    30. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
    31. Schleich, Joachim & Gruber, Edelgard, 2008. "Beyond case studies: Barriers to energy efficiency in commerce and the services sector," Energy Economics, Elsevier, vol. 30(2), pages 449-464, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ángeles Longarela-Ares & Anxo Calvo-Silvosa & José-Benito Pérez-López, 2020. "The Influence of Economic Barriers and Drivers on Energy Efficiency Investments in Maritime Shipping, from the Perspective of the Principal-Agent Problem," Sustainability, MDPI, vol. 12(19), pages 1-42, September.
    2. Rehmatulla, Nishatabbas & Smith, Tristan, 2015. "Barriers to energy efficiency in shipping: A triangulated approach to investigate the principal agent problem," Energy Policy, Elsevier, vol. 84(C), pages 44-57.
    3. Rehmatulla, Nishatabbas & Smith, Tristan, 2020. "The impact of split incentives on energy efficiency technology investments in maritime transport," Energy Policy, Elsevier, vol. 147(C).
    4. Apriani Soepardi & Pratikto Pratikto & Purnomo Budi Santoso & Ishardita Pambudi Tama & Patrik Thollander, 2018. "Linking of Barriers to Energy Efficiency Improvement in Indonesia’s Steel Industry," Energies, MDPI, vol. 11(1), pages 1-22, January.
    5. Nepomuceno de Oliveira, Maurício Aguilar & Szklo, Alexandre & Castelo Branco, David Alves, 2022. "Implementation of Maritime Transport Mitigation Measures according to their marginal abatement costs and their mitigation potentials," Energy Policy, Elsevier, vol. 160(C).
    6. Gliedt, Travis & Hoicka, Christina E., 2015. "Energy upgrades as financial or strategic investment? Energy Star property owners and managers improving building energy performance," Applied Energy, Elsevier, vol. 147(C), pages 430-443.
    7. Backlund, Sandra & Thollander, Patrik & Palm, Jenny & Ottosson, Mikael, 2012. "Extending the energy efficiency gap," Energy Policy, Elsevier, vol. 51(C), pages 392-396.
    8. Henningsen, Geraldine & Wiese, Catharina, 2019. "Do Household Characteristics Really Matter? A Meta-Analysis on the Determinants of Households’ Energy-Efficiency Investments," MPRA Paper 101701, University Library of Munich, Germany.
    9. Bilous Liliia, 2020. "Determination of energy efficiency barriers taxonomy in socio-economic model of Ukraine," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 3(4(53)), pages 14-21.
    10. Bhatt, Brijesh & Singh, Anoop, 2021. "Power sector reforms and technology adoption in the Indian electricity distribution sector," Energy, Elsevier, vol. 215(PA).
    11. Seyed Vahid Vakili & Fabio Ballini & Dimitrios Dalaklis & Aykut I. Ölçer, 2022. "A Conceptual Transdisciplinary Framework to Overcome Energy Efficiency Barriers in Ship Operation Cycles to Meet IMO’s Initial Green House Gas Strategy Goals: Case Study for an Iranian Shipping Compan," Energies, MDPI, vol. 15(6), pages 1-25, March.
    12. von Knorring, Hannes, 2019. "Energy audits in shipping companies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 125(C), pages 35-55.
    13. Stéphane Poncin, 2018. "Energy policy tools in Luxembourg - Assessing their impact on households’ space heating energy consumption and CO2 emissions by means of the LuxHEI model," DEM Discussion Paper Series 18-23, Department of Economics at the University of Luxembourg.
    14. Cagno, E. & Worrell, E. & Trianni, A. & Pugliese, G., 2013. "A novel approach for barriers to industrial energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 290-308.
    15. Petrov, Ivan & Ryan, Lisa, 2021. "The landlord-tenant problem and energy efficiency in the residential rental market," Energy Policy, Elsevier, vol. 157(C).
    16. Kangas, Hanna-Liisa & Lazarevic, David & Kivimaa, Paula, 2018. "Technical skills, disinterest and non-functional regulation: Barriers to building energy efficiency in Finland viewed by energy service companies," Energy Policy, Elsevier, vol. 114(C), pages 63-76.
    17. Fleiter, Tobias & Schleich, Joachim & Ravivanpong, Ployplearn, 2012. "Adoption of energy-efficiency measures in SMEs—An empirical analysis based on energy audit data from Germany," Energy Policy, Elsevier, vol. 51(C), pages 863-875.
    18. Matheus Koengkan & Nuno Silva & José Alberto Fuinhas, 2023. "Assessing Energy Performance Certificates for Buildings: A Fuzzy Set Qualitative Comparative Analysis (fsQCA) of Portuguese Municipalities," Energies, MDPI, vol. 16(7), pages 1-30, April.
    19. Tobias Fleitera & Joachim Schleich & Ployplearn Ravivanpong, 2012. "Adoption of energy-efficiency measures in SMEs - An empirical analysis based on energy audit data," Post-Print hal-00805748, HAL.
    20. Trotta, Gianluca, 2018. "Factors affecting energy-saving behaviours and energy efficiency investments in British households," Energy Policy, Elsevier, vol. 114(C), pages 529-539.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:26:y:2024:i:12:d:10.1007_s10668-023-03991-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.