Government Subsidies and Revenue Sharing Decisions for Port and Shipping Service Supply Chain in Emission Control Areas

Abstract

As the core of the port and shipping service supply chain system, the port and shipping companies must urgently solve the problem of how to balance emissions, costs, and benefits with the gradual extension of China’s emission control area (ECA) and the stringent emission requirements. From the perspective of system optimization, this research constructs a revenue sharing model of the port and shipping service supply chain and deals with the revenue sharing decision-making problem of the secondary service supply chain after port enterprises and shipping enterprises joining the government subsidy mechanism driven by ECA’s policy. Research shows that the government subsidy mechanism directly affects the profit of the port and shipping service supply chain, which is the key factor in implementing the ECA’s policy and promoting the emission reduction of the port and shipping enterprises. The revenue sharing of the port and shipping enterprises plays a decisive role in the revenue of the shipping enterprises. Cooperative emission reduction mechanism should be led by port enterprises to promote the balance between revenue and emission reduction in the supply chain system. Results provide a reference for the Chinese government to formulate corresponding incentives and subsidy policy under the new ECA’s regulations as well as solving the problems of how to balance emissions reduction and cost improvement for port and shipping enterprises.