Shipping company’s choice of shore power or low sulfur fuel oil under different power structures of maritime supply chain

Chuanxu Wang, Yan Jiao and Jiayi Peng

Maritime Policy & Management, 2024, vol. 51, issue 7, 1423-1442

Abstract: With the deep integration of shipping companies and the stable operation of the three alliances (2 M, THE, Ocean), the previous situation of port monopoly has changed. In view of this situation, this paper tries to study the influence of government subsidies on the choice of shore power or lower sulfur fuel oil strategy of shipping company and the entire maritime supply chain under different power structures (Port Stackelberg (PS), Nash Game (N), Shipping company Stackelberg (CS)). Results show that when carbon price is very low or very high, the governmental subsidy will not affect the shipping company’s choice of shore power or lower sulfur fuel oil, but when carbon price is moderate, government subsidy will encourage shipping company to adopt shore power (SP). For the shipping company, using LSFO when the carbon price is low or adopting SP when the carbon price is high can bring the highest profit. For the government, if the government cares more about the supply chain’s profit, then the government should try to promote the power structure of PS or CS, and if the government pays more attention to social welfare, the power structure of N should be promoted.

Date: 2024
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/03088839.2023.2174609 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:marpmg:v:51:y:2024:i:7:p:1423-1442

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TMPM20

DOI: 10.1080/03088839.2023.2174609

Access Statistics for this article

Maritime Policy & Management is currently edited by Dr Kevin Li and Heather Leggate McLaughlin

More articles in Maritime Policy & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().