Impacts of a bunker levy on decarbonizing shipping: A tanker case study
Journal
Transportation Research Part D: Transport and Environment
Date Issued
May 1, 2022
DOI
10.1016/j.trd.2022.103257
Abstract
The pressure on shipping to reduce its carbon footprint is increasing. Various measures are being proposed at the International Maritime Organization (IMO), including Market-Based Measures (MBMs). This paper investigates the potential of a bunker levy in achieving short-term CO2 emissions reductions. The analysis focuses on the tanker market and uses data from the latest IMO GHG studies and a variety of other sources. The connection between fuel prices and freight rates on the one hand and vessel speeds on the other is investigated for the period 2010–2018. A model to find a tanker's optimal laden and ballast speeds is also developed and applied to a variety of scenarios. Results show that a bunker levy, depending on the scenario, can lead to short-term CO2 emissions reductions of up to 43%. Policy implications are also discussed, particularly vis-à-vis recent IMO and European Union (EU) action on MBMs.
File(s)![Thumbnail Image]()
Name
TRD 2022 - Lagouvardou, Psaraftis, Zis.pdf
Size
2.12 MB
Format
Adobe PDF
Checksum (MD5)
c8dfb435b67f18bde291deb569919235