Shore side electricity subsidy policy efficiency optimization: From the game theory perspective

Abstract

Shore Side Electricity (SSE) can help reduce emissions in ports effectively. However, the adoption of SSE is hindered by a financial dilemma. This paper aims to propose a Stackelberg game theory model for optimizing the government subsidy scheme considering the interactions among the government, port and ships, in order to maximize the subsidy efficiency calculated by environmental benefit per unit monetary subsidy. The port of Shanghai is selected as the sample. Results show that within the optimized government subsidy structure, the subsidy on ships should be prioritized more than that on the port. Besides, the decision of the government's subsidy on ships is usually consistent with the trend of social welfare evolution. It also indicates that a busier port and ships with longer service time and higher berthing power are more worthwhile to subsidize.