Information Technology Reference
In-Depth Information
5
Discussion
Table 5 demonstrates that speed reduction is a useful measure in cutting down CO
2
emissions of a ship. Fig. 2 illustrates two phenomena. Firstly, with the rise of CO
2
allowances auction rate, the annual profit of the ship is descending quickly when the
ship speed is fixed. Due to this phenomenon, auction for CO
2
allowances could be a
financial burden to ship carriers. Secondly, between all the auction rates proposed in
this paper, when loading the factor is 85%, ship speed reductions of 5%, based on its
original profit-maximizing speed, should be the most profitable choice for a ship
operator comparing with other speed reduction rates.
Table 4.
Annual profit (USD) of the ship with different speed reduction rates in five allowance
auction rates
Speed Reduction Rate
Auction Rate
0
5%
10%
15%
0.2
1495739.2
1645158.9
1362113.4
1021391.1
0.4
1114638.0
1264057.8
981012.2
259188.6
0.6
733536.8
882956.66
599911.0
-121912.6
0.8
352435.6
501855.3
218809.8
-503013.8
1
-28665.6
120754.1
-162291.4
-884115.0
Table 5.
Annual CO
2
emissions (tons) of the ship in different speed reduction rates
Speed Reduction Rate
0
5%
10%
15%
Annual CO
2
emissions
95275.3
82744.8
71251.2
60853.3
Annual Profit
(USD)
Speed Reduction
Rate 0
Speed Reduction
Rate 5%
Speed Reduction
Rate 10%
Speed Reduction
Rate 15%
2000000
1500000
1000000
500000
0
Auction Rate
-500000
0
0.2
0.4
0.6
0.8
1
-1000000
-1500000
Fig. 2.
Trends of the annual profit of the ship with different speed reduction rates when the
auction rate increases
