Abstract

To cope with severe environmental problems, the government has implemented strict emission control policies, and promoted the use of technology such as shore power (SP) in the form of subsidies. The SP providers of the shipping lines like the ports provide better SP services to shipping lines by improving its reliability, such as safety and standardization. This paper examines a two-echelon maritime supply chain consisting of a port and a shipping line under government green subsidy and explores the subsidy mechanism and its impact. The optimal government subsidy intensity and subsidy reduction point are confirmed using game theory. The system dynamics (SD) method is used to analyze the influence and evolution of practical problems such as government subsidy efficiency, information asymmetry, and inconsistent decision-making periods under multiple games utilizing the optimal response function. The paper shows that both shipper SP preference and decision period affect the SP reliability. When the shipper's preference is high, the actual shipper's subsidies and government subsidies are inefficient. Information asymmetry borne by ports and shipping line causes considerable fluctuations in the game and does not affect the actual subsidies received by shippers. Also, shipping line downstream of the supply chain are more affected by it. This paper offers insight for the government to formulate subsidy policies in the maritime supply chain.

Highlights

  • Maritime shipping logistics is an efficient and sustainable mode of transportation

  • APPLICATION OF GAME THEORY AND system dynamics (SD) IN PORTS Our research examines the application of game theory and SD in ports, which has been used by many researchers in the last few decades

  • The system we established that reached equilibrium after 17 rounds of games, the simulation results are consistent with the optimal solution of Section III, which means our dynamic maritime green subsidy model (DMGSM) can represent the game process between the green port and the shipping line

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Summary

INTRODUCTION

Maritime shipping logistics is an efficient and sustainable mode of transportation. It is the lifeline of the global economy and undertakes 90% of global trade [1]. X. Li et al.: Using SD and Game Model to Estimate Optimal Subsidy in SP Technology and inland rivers, 0.5% SO2 emission limit for a ship at berth and its adjacent sea areas, and 0.1 % for sailing on inland rivers [10]. Li et al.: Using SD and Game Model to Estimate Optimal Subsidy in SP Technology and inland rivers, 0.5% SO2 emission limit for a ship at berth and its adjacent sea areas, and 0.1 % for sailing on inland rivers [10] Shipping lines with their ships are forced to use clean equipment technology or Low Sulphur Fuel Oil (LSFO) to reduce emissions and comply with emission control regulations. This paper constructs a two-level green maritime supply chain that includes ports and shipping lines to address the information asymmetry problem, inconsistent decisionmaking periods and subsidy stability.

LITERATURE REVIEW
DYNAMIC GAME SIMULATION BASED ON SD
RESULTS AND DISCUSSION
CONCLUSION

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