The economics of shipping decarbonisation: Carbon, production, and allocative efficiencies

Existing shipping environmental regulations largely omit the economic dimension which, in turn, delays the industry's clean energy transition. This paper investigates the efficiency of global shipping on economic foundations. We apply a stochastic frontier analysis to assess the interactions between capital, operation, earnings, and transport work, both across all major shipping segments and at an individual-vessel level. The empirical results indicate that carbon efficiency of vessel types decr