Title: Optimising containership speed and fleet size under a carbon tax and an emission trading scheme

Authors: Jae-Gon Kim; Hwa-Joong Kim; Paul Tae-Woo Lee

Addresses: Department of Industrial and Management Engineering, Incheon National University, 12-1 Songdo-dong, Yeonsugu, Incheon 406-772, Korea ' Graduate School of Logistics, Inha University, 253 Yonghyun-dong, Nam-gu, Incheon 402-751, Korea ' Department of Business Administration, Soochow University, 56, Sec. 1, Kuei-Yang Street, Taipei, Taiwan

Abstract: This paper addresses the problem of determining the ship speed, fleet size, and chartered ship number subject to environmental regulations consisting of a carbon tax and an emission trading scheme. The objective of the problem is to minimise bunker consumption cost, ship operating cost, ship charterage and either the carbon tax or the revenue/cost of selling/purchasing CO2 emissions permits. We formulate the problems as non-linear programmes by considering the two regulations independently. This study also suggests Lagrangian heuristics to solve the problems. A case study is performed to evaluate the applicability of the heuristics.

Keywords: emissions trading schemes; carbon tax; ship speed; nonlinear programming; Lagrangian heuristics; container shipping; fleet size; chartered ship numbers; environmental regulations; bunker consumption costs; ship operating costs; ship charterage; CO2; carbon dioxide; carbon emissions.

DOI: 10.1504/IJSTL.2013.056835

International Journal of Shipping and Transport Logistics, 2013 Vol.5 No.6, pp.571 - 590

Available online: 10 Sep 2013 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article