Governmental Functions in Establishing Alternative Marine Fuel Supply Chains in Shipping Decarbonization Governance

Abstract

This study aims at exploring the importance of the governmental functions in establishing alternative marine fuel (AMF) supply chains at the early stage of shipping decarbonization and providing proposals of the main measures to be taken by governments. It first analyzes the significance of these supply chains based on the adaptability analysis of AMFs from the perspective of their respective potential in reducing greenhouse gas emissions, costs, safety, and availability, mainly by way of a literature review. Then, the importance of governmental functions in establishing these supply chains is probed based on the features of these supply chains and by applying the theory of economics concerning the relationship between the government and the market. Finally, four specific measures to be taken by governments in establishing these supply chains are explored and proposed. The findings of a questionnaire investigation conducted in China are cited in support of the theoretical analysis. The main conclusions of this study reflecting its main contribution thereof are: AMF supply chains are crucial in achieving shipping decarbonization goals; government intervention is needed to rectify the disadvantages of market mechanisms in establishing these supply chains; as the main measures, governments need to develop strategic plans and policies, take appropriate market-based measures of tax incentives, fiscal subsidies, and/or other economic incentives, provide administrative guidance, and enhance international cooperation.