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  • Writer's pictureRyan Lynch

Emissions - How to internalize a public good?

This week we look at emission exposure on a per day basis for the tanker segment of international commercial maritime shipping.

A segment which is historically ambiguous on regulatory exposure, and fluid in jurisdictional compliance; it is a complex problem for economists, regulators, and financiers to approach. MOIC suggests the macro-focused research as to casual flow of financial burdens currently acts as a headwind to actions.

Instead we focus our research on approaching the concern from a "bottom-up" causal approach, which can be incorporated in the natural industry variables, that is per ship per diem allocation of usage.

We find that static models are not appropriate to asses the damage, and rather understanding the behavioristic tendencies within industry, may allow regulatory agencies to capture increase abatement funding. Additionally, given the highly complex market dynamics, we further recommend binding regulatory authority is necessary and while potentially inflationary on cost of goods today, the effect may offset potential exponentially inflationary effects of a do-nothing policy.

For an analysis of your fleet, or your chartered tonnage, please don't hesitate to reach out-

MOIC 23 Jan
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