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optimizing ship operations. International ship operators also try to exploit potential
operational improvements to achieve emissions reduction, e.g. fleet composition and
speed reduction [2]. Psaraftis et al. [11] demonstrated that speed reduction is an effec-
tive emissions reduction measure for fast ships. Corbett et al. [12] highlighted that a
speed reduction mandate targeted to achieve 20% CO
2
reduction in the container fleet
costs between $20 and $200 per ton CO
2
, depending on how the fleet responds to a
speed reduction mandate. Based on the research of Corbett et al. [12], Crist [4] calcu-
lated the impact of speed reduction on 8500 TEU container vessels. The analysis of
speed reductions from 10% to 50% showed that when the speed is reduced to a half,
fuel consumption decreases by 87%. Furthermore, according to a study of Eide et al.
[13] in 2009, cost effective GHG reductions for a fleet may be in the order of 30% for
technical measures, and above 50% when including speed reductions.
From a market perspective, there are also some literatures on market-based meas-
ures to reduce international shipping CO
2
emissions [14-16]. However, there is a lack
of research combining market-based measures with operational or technical measures.
One important reason is that there have not existed any worldwide market-based
measures to limit international shipping GHG by now. In order to propel the devel-
opment of market-based measures, Miola et al. [17] analyzed limits and opportunities
of current market-based measures through a discussion at the international level in
2012. Meanwhile, they estimated the cost-effectiveness of the main technical GHG
reduction measures in order to give a magnitude of such costs within a market-based
policies framework [17].
From the literature review above, we can see that research on the joint influence of
market-based and the other two measures are not extensive. Even if there are a few, they
mainly focused on GHG emissions reduction or cost effectiveness, disregarding the
profitability of the ship. Moreover, rules of market-based measures are not decided by
ship operators compared with technical and operational measures, thus it is worth to
study some potential market-based measures to help ship operators choose the most
profitable GHG reduction options in advance. This paper mainly focuses on proposing a
potential market-based measure, especially an emissions trading scheme. Combined
with slow steaming [18], which is an operational measure, this paper discusses the joint
influence of these two measures on the profit and CO
2
emissions of a ship.
This article is organized as follows. Since the background of this article is intro-
duced in Section 1, Section 2 briefly reviews emissions trading schemes and proposes
a marine emissions trading scheme based on existing research. Section 3 develops a
model to evaluate the influence of the marine emissions trading scheme on the annual
profit and CO
2
emissions of a ship when it responses as speed reduction. Section 4
carries out a case study on a containership. Discussions of the results are given in
Section 5. Conclusions and further research are drawn in Section 6.
2
Potential Marine Emissions Trading Scheme
Among the existing literature, there are mainly two market-based measures,
respectively, emissions taxes and emissions trading [19-21]. Between these two
measures, emissions taxes are not considered on a global scale as they have political
characteristics. Furthermore, how much emissions taxes should be levied, who will
manage the fund, etc., are also issues hindering their implementations.
