Green premium and the role of financial investors in sustainable investment in container shipping

Sustainable investment in tangible shipping assets is important for understanding investor behaviour and promoting sustainable development in the industry and the global economy. This research presents a framework for empirically testing the existence of the "green premium" for eco-ships and the role of financial investors in containership investments. Real transaction data from over 2000 sales and purchases of containerships between 2005 and 2023 are utilized in this study. A Generalized Structural Equation Modelling is employed to investigate the relationship among variables, including vessel value, eco-ships, investor categories, age, size, and others. The finding confirms the presence of a green price premium for the second-hand container eco-ships. Furthermore, financial buyers, who typically act as lessors in the financial leasing of ships in the shipping industry, have shown a more pronounced inclination towards investing in container ecoships compared to operating buyers.