Abstract
As the core of the port and shipping service supply chain system, the port and shipping companies must urgently solve the problem of how to balance emissions, costs, and benefits with the gradual extension of China’s emission control area (ECA) and the stringent emission requirements. From the perspective of system optimization, this research constructs a revenue sharing model of the port and shipping service supply chain and deals with the revenue sharing decision-making problem of the secondary service supply chain after port enterprises and shipping enterprises joining the government subsidy mechanism driven by ECA’s policy. Research shows that the government subsidy mechanism directly affects the profit of the port and shipping service supply chain, which is the key factor in implementing the ECA’s policy and promoting the emission reduction of the port and shipping enterprises. The revenue sharing of the port and shipping enterprises plays a decisive role in the revenue of the shipping enterprises. Cooperative emission reduction mechanism should be led by port enterprises to promote the balance between revenue and emission reduction in the supply chain system. Results provide a reference for the Chinese government to formulate corresponding incentives and subsidy policy under the new ECA’s regulations as well as solving the problems of how to balance emissions reduction and cost improvement for port and shipping enterprises.
Highlights
Faced with increasingly strict port environmental pollution and emission control requirements, port and shipping enterprises must take a series of reform measures to promote the green and sustainable development of port and shipping service supply chain
Mandatory requirements are imposed on the use of shore power systems. e increasingly strict emission control area (ECA) poses a huge challenge to the service supply chain system of port and shipping companies as reflected in the significant increase in operating costs of port and shipping companies, especially shipping companies. e Wood Mackenzie consulting firm predicts that the sulfur limit for marine oils from 3.5% to 0.5% by 2020 will cause shipping companies to spend an additional $60 billion a year
Our main theoretical contributions are proposing a concept of a green index of emission control area to measure the technological upgrading effect of port and shipping enterprises and providing a revenue sharing contract for balancing the benefit and cost caused by the upgrading equipment; in practice, this paper provides suggestions for the Chinese government to formulate corresponding incentives and subsidy policy under the new ECA’s regulations
Summary
Faced with increasingly strict port environmental pollution and emission control requirements, port and shipping enterprises must take a series of reform measures to promote the green and sustainable development of port and shipping service supply chain. According to the management idea of supply chain, this study examines the cost sharing and revenue sharing of the two-stage supply chain composed of port enterprises and shipping companies under ECA restrictions It introduces a government subsidy mechanism to solve the dilemma between the cost increase caused by emission reduction and expected benefits. Our main theoretical contributions are proposing a concept of a green index of emission control area to measure the technological upgrading effect of port and shipping enterprises and providing a revenue sharing contract for balancing the benefit and cost caused by the upgrading equipment; in practice, this paper provides suggestions for the Chinese government to formulate corresponding incentives and subsidy policy under the new ECA’s regulations
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
