| International shipping is an important part of global supply chain.Frequent activities of maritime transport are not environmentally friendly.With the rapid development of global trade,the transportation demand of shipping continues to increase.It will result in an even serious problem of air pollution from shipping.But the shipping industry has not been included in any global emission reduction agreement.Policies in this sector aiming at controlling ship emissions are still insufficient.This dissertation,standing on a policymaker’s viewpoint,addresses two issues:(1)Propose a shipping-suited Emission Trading Scheme(ETS)to control ship emissions,especially discussing the issue on how to allocate emission quotas.Based on the literature,this study first proposes two quota allocation rules: Ship-based Allocation Rule(SAR)and Cargo-based Allocation Rule(CAR),in which quotas are allocated according to the expected standards of ship efficiency and emissions per unit of cargo,respectively.SAR stands on the supply side of the shipping market,and is aimed at reducing emissions by improving ships efficiency levels to meet or surpass the policy standards.CAR stands on the demand side of the shipping market,and is aimed at reducing emissions by encouraging ships to increase their cargo loading factor.(2)Impact assessment of the proposed schemes.In order to evaluate whether the proposed ETS is effective,this study considers two kinds of operators’ strategies.One is individual ship maximizing its profit through optimizing its sailing speed.The other is a ship fleet minimizing the cost through optimizing its speed and capacity.Furthermore,two ETSs are considered.One is the open system with exogenous quota trading price,and the other is the closed system with endogenous quota trading price.In the open system,the findings show that CAR is better than SAR not matter an individual or a fleet strategy,because it reduces more emissions with less cost.In the closed system,this study investigates how to estimate the uncertain emission trading price and emission reduction achievement under a given policy standard.Results show that the equilibrium quota trading price is unique,and each ship’s emission choice is also unique provided that not all ship speeds are at boundary speeds(maximum or minimum).This dissertation proposes the design and impact assessment of an emission trading scheme,which can benefit policymakers by providing new ideas and suggestions to control ship emissions.It also helps shipping companies and other market participants to understand the impact of ETS to ship operation strategy.As this is the first attempted discussion on how to design an international-level ETS,specific rules and the evaluation method proposed in this dissertation may also help policymakers in the aviation industry. |
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