The Impact of Demand and Regulatory Uncertainties on Shipowner Investment Decision

Leonardo Santiago, Franz Maximilian Buchmann

Research output: Contribution to conferenceConference abstract for conferenceResearch


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.
Original languageEnglish
Publication date2023
Number of pages1
Publication statusPublished - 2023
Event2023 INFORMS Annual Meeting: Harnessing the Data Revolution … All with the Power of OR/MS! - Phoenix Convention Center, Phoenix, United States
Duration: 15 Oct 202318 Oct 2023


Conference2023 INFORMS Annual Meeting
LocationPhoenix Convention Center
Country/TerritoryUnited States
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