This paper investigates a design of an emission trading scheme that aims at reaching an industry-wide emission targets on a ship owner’s investment decisions. We show that increased uncertainty in the demand for pollution and regulatory risks has a substantial impact on a ship owner’s costs of regulation and the value of managerial flexibility. We discuss the implications for regulatory authorities aspiring to incentivize the adoption of clean technologies to decarbonize the maritime industry.
|Number of pages
|Published - 2023
|2023 INFORMS Annual Meeting: Harnessing the Data Revolution … All with the Power of OR/MS! - Phoenix Convention Center, Phoenix, United States
Duration: 15 Oct 2023 → 18 Oct 2023
|2023 INFORMS Annual Meeting
|Phoenix Convention Center
|15/10/2023 → 18/10/2023