Green tramp shipping routing and scheduling: Effects of market-based measures on CO2 reduction

Abstract

In this chapter we examine, from a tramp ship operator’s point of view, how potential CO2 emission reduction measures impact the operational decisions and their economic and environmental consequences. Two market-based measures (MBMs) are discussed, the bunker levy scheme and the emission trading scheme, and we show that both can be incorporated in a similar way into a typical tramp ship routing and scheduling model. We also demonstrate with a computational study the environmental benefits of these CO2 reduction schemes.