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http://hdl.handle.net/10397/106831
Title: | Optimal subsidy design for energy generation in ship berthing | Authors: | Wang, W Wang, S Zhen, L |
Issue Date: | 2023 | Source: | Maritime policy and management, Published online: 31 Aug 2023, Latest Articles, https://doi.org/10.1080/03088839.2023.2251479 | Abstract: | Shipping, the backbone of economic development, poses a significant environmental threat. Many government agencies have implemented regulations to mitigate ship air pollution. Three commonly used methods for compliance during berthing are marine diesel oil, scrubber, and shore power. Scrubber and shore power have greater emission reduction potential but can be costlier than marine diesel oil. To encourage their adoption, we optimize the subsidy plan through a bi-level mixed integer programming model where the government at the upper level minimizes the total subsidy amount while ship operators at the lower level choose the most cost-effective energy supply. The problem's complexity arises from the interdependence in the bi-level structure and the nonlinearity in the model. We address this by first converting the model into an equivalent single-level form and then reformulating the model by linearization. Numerical experiments are conducted to assess the model's performance. Results suggest that the promotion of scrubber or shore power starts with large ships in the initial stage. Increasing the number of ships with these technologies reduces subsidies. Additionally, each subsidy corresponds to a specific utilization range, allowing the government to adjust amounts based on target utilization levels. | Keywords: | bi-level optimization green shipping scrubber shore power Subsidy design |
Publisher: | Routledge | Journal: | Maritime policy and management | ISSN: | 0308-8839 | EISSN: | 1464-5254 | DOI: | 10.1080/03088839.2023.2251479 | Rights: | © 2023 Informa UK Limited, trading as Taylor & Francis Group This is an Accepted Manuscript of an article published by Taylor & Francis in Maritime Policy & Management on 31 Aug 2023 (published online), available at: http://www.tandfonline.com/10.1080/03088839.2023.2251479. |
Appears in Collections: | Journal/Magazine Article |
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