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The effect of LNG bunkering on port competitiveness using multilevel data analysis 1

Author

Listed:
  • Akoh Fabien Yao

    (CRG I3 - Centre de recherche en gestion I3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Maxime Sèbe

    (CRG I3 - Centre de recherche en gestion I3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Laura Recuero Virto

    (CRG I3 - Centre de recherche en gestion I3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, DVHE - De Vinci Higher Education)

  • Abdelhak Nassiri

    (AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UBO - Université de Brest - IUEM - Institut Universitaire Européen de la Mer - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique - CNRS - Centre National de la Recherche Scientifique)

  • Hervé Dumez

    (CRG I3 - Centre de recherche en gestion I3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

Environmental practices can enable most businesses, including ports, to gain a competitive advantage. Given the chicken-and-egg dilemma for the adoption of alternative fuels in the shipping industry, this article assesses whether and to what extent ports have incentives to provide liquefied natural gas (LNG) bunkering infrastructure. More specifically, we test whether such facilities positively affect the competitiveness of the ports, which would be an additional incentive to drive the transition to alternative fuels. Using multilevel regressions and propensity score matching on LNG-fueled vessel movements in the Baltic Sea Region in 2019, we found no significant effect of LNG bunkering infrastructure on port competitiveness, measured by port choice probabilities expressed by vessels. Although our findings indicate that ports do not gain a competitive advantage in the short-term, we do not rule out potential gains in the long-term. Policy intervention is desirable in the short-term to maintain incentives for port investments.

Suggested Citation

  • Akoh Fabien Yao & Maxime Sèbe & Laura Recuero Virto & Abdelhak Nassiri & Hervé Dumez, 2024. "The effect of LNG bunkering on port competitiveness using multilevel data analysis 1," Post-Print hal-04859307, HAL.
  • Handle: RePEc:hal:journl:hal-04859307
    Note: View the original document on HAL open archive server: https://hal.science/hal-04859307v1
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    LNG; port choice; Baltic Sea; multilevel regression; propensity score matching JEL Codes: L92; R49; Q42;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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