Information Technology Reference
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The initial allocation measure in the marine emissions trading scheme is a combi-
nation of grandfathering and auctioning, which considers not only the financial bur-
den to ship operators, but also emissions reduction pressure to the whole industry.
Based on scenario analysis and referred to EU ETS, this paper proposes five possible
auction rates. A case study based on a containership running the Asia-Europe route
with 8000 TEUs capacity is conducted to test the influence of the marine emissions
trading scheme on the annual profit and CO
2
emissions of a containership with the
response of speed reduction. The results of this case study demonstrate that speed
reduction is an effective measure in cutting down GHG emissions of a ship. In addi-
tion, the auction rate of allowances has a strong impact on the annual profit of a ship
which drops sharply as the auction rate increases. Furthermore, from the profit pers-
pective, ship operators' choice on speed reduction and their incentive to adopt the
scheme turn out to be related with the situation of the shipping market. Hence, the
auctioning rate among the cap of emissions for a ship may refer to the international
shipping industry or be supported by policies such as revenue recycling.
In order to verify the feasibility of this scheme, in the further research multiple
containerships and other typical routes should be considered. As far as acceptability
of this scheme, this paper discusses it mainly from the profit perspective. More atten-
tion should be paid on social welfare, a combination of other technical or operational
measures to further study the implementation of the marine emissions trading scheme.
Acknowledgement.
This research is performed under the financial supports of the
Ministry of Science and Technology of the People's Republic of China with Project
No. 2012BAC20B03-08 and the China Clean Development Mechanism Fund with
Project No. 1213094-3.
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