Ownership and Emissions in Shipping

Abstract

This study examines the relationship between scope 1 emissions and ownership structures in the global shipping industry. In the green transition, it is beneficial to understand how ownership structures can affect managements decision-making. To assess this, we use end-of-year data on institutional, family, and public ownership to determine if changes in ownership affect emissions, using three different regression models. The study also discusses the relationship between profitability and emissions and if these are opposites or can be simultaneously thoughts in a cyclic industry. The results indicate that higher percentage of family ownership are related to reduced emissions per DWT. No clear evidence is found whether institutional or public ownership has a statistically significant effect on emissions per DWT, resulting in either lower or higher emissions per DWT when ownership changes. Further, the analysis uncovers that profitability and emissions per DWT are negatively related to each other, meaning an increase in profitability, measured in ROE, increases emissions per DWT. Not surprisingly, emissions per DWT seem to have reduced over time, meaning the green transition into a more sustainable industry is well on its way. The study contributes to a rising field of research regarding sustainability and especially emissions. The global shipping industry is valuable for the global economy due to facilitating transportation of goods but has substantial yearly emissions. Further studies should be conducted to build a more comprehensive field of studies regarding ownership structures effect on emissions in the shipping industry.

This study examines the relationship between scope 1 emissions and ownership structures in the global shipping industry. In the green transition, it is beneficial to understand how ownership structures can affect managements decision-making. To assess this, we use end-of-year data on institutional, family, and public ownership to determine if changes in ownership affect emissions, using three different regression models. The study also discusses the relationship between profitability and emissions and if these are opposites or can be simultaneously thoughts in a cyclic industry. The results indicate that higher percentage of family ownership are related to reduced emissions per DWT. No clear evidence is found whether institutional or public ownership has a statistically significant effect on emissions per DWT, resulting in either lower or higher emissions per DWT when ownership changes. Further, the analysis uncovers that profitability and emissions per DWT are negatively related to each other, meaning an increase in profitability, measured in ROE, increases emissions per DWT. Not surprisingly, emissions per DWT seem to have reduced over time, meaning the green transition into a more sustainable industry is well on its way. The study contributes to a rising field of research regarding sustainability and especially emissions. The global shipping industry is valuable for the global economy due to facilitating transportation of goods but has substantial yearly emissions. Further studies should be conducted to build a more comprehensive field of studies regarding ownership structures effect on emissions in the shipping industry.