Carbon emission reduction strategy in shipping industry: A joint mechanism

In the context of carbon taxation regulations in shipping industry, shipping companies are trapped in the pressure of emission reduction capital, resulting in a dearth of incentives to curtail emissions. To investigate cooperative emission reduction strategies between shipping companies and port predicated on mutual benefit, a joint mechanism characterized by "investment-first, reimbursement-later" is proposed in this paper, which differs from the previous mode of "whoever pays taxes will reduce emissions", thereby catalyzing proactive engagement from key stakeholders such as port in emission reduction endeavors. It is demonstrated that under specific conditions, the mechanism facilitates the simultaneous consideration of economic and environmental benefits by all parties, surpassing the overall outcomes of non-mechanism scenario. Moreover, it is noteworthy that in cases of substantial initial carbon emissions, it is advised for port to conduct the mechanism with shipping company who is engaged with information sharing by adopting cutting-edge emission reduction technologies. Conversely, port facing less formidable emission challenges may find non-cutting-edge emission reduction technologies more suitable for collaboration with conventional shipping company to implement the mechanism.