Strategies towards effective emission reduction of the inland shipping industry in the port of Rotterdam

Using a mixed-integer linear programming model

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Abstract

Currently, the inland shipping industry is not sufficiently incentivised to invest in sustainable technologies in order to reduce their emissions. The industry itself wants to be more sustainable, but there is insufficient financial room to invest in alternative technologies. Besides, public authorities try to achieve a reduction using command-and-control policy instruments. Therefore, this study aims to gain insights into the relationship between policy instruments and incentivising technical alternatives. In this study, emission-reducing strategies have been identified using a mixed-integer linear programming (MILP) model based on the fleet owned by the Port of Rotterdam. As a result, this study has identified two effective strategies – environmentally differentiated port dues and environmental fees. The effectiveness of the environmentally differentiated port dues can be allocated to the degree of pollution control. The implication of an environmental fee on carbon dioxide (CO2) emissions, has led to a reduction in either greenhouse gas and pollutant emission.

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