Winning the carbon race: Game-based strategies for emission reduction in maritime industry

The maritime industry contributes to global greenhouse gas (GHG) emissions, accounting for approximately 2.89 % of global emissions. With the International Maritime Organization (IMO) setting ambitious goals to reduce carbon emissions by 50 % by 2050, there is a pressing need for effective strategies in the maritime industry. This study examines the strategic interactions between governments, port authorities, and shipping companies by utilizing game theory to explore dynamic and evolving behaviors in carbon emission reduction efforts. By establishing a trilateral game model, the research provides insights into the complex interplay of incentives and deterrents that influence stakeholder actions. Key scenarios analyzed include the net incremental benefits of adopting specific strategies by port authorities and the additional costs incurred by shipping companies when implementing green practices. The findings indicate that port authorities can achieve significant benefits by adopting collaborative strategies, supported by government incentives to offset initial high costs, while for shipping companies, the analysis underscores the importance of weighing additional costs against potential operational efficiencies and market advantages. The study offers targeted policy recommendations to promote the development of a low-carbon maritime industry, highlighting the potential of green fuels and advanced technologies in achieving sustainable maritime operations. This research fills a critical gap in understanding the strategic behaviors driving emission reductions in maritime industry, contributing to broader efforts in combating global climate change.