Bi-level optimization model applications in managing air emissions from ships: A review

Ship air emissions are recognized as one of the key concerns of the maritime industry. Competent authorities have issued various regulations to manage air emissions from ships. Although the authorities are policy makers, the effectiveness of policies is up to the shipping industry who operates the vessels and terminals to fulfill maritime transportation works. Given this characteristic, bi-level optimization model has been widely adopted in studies that optimize policy design or evaluate its effectiveness. The framework of a typical bi-level optimization model for ship emission management problem is given to show the basic structure of similar issues. A series of applications of bi-level optimization model in managing ship emissions is reviewed, including cases of Energy Efficiency Design Index, Emissions Control Area, Market Based Measure, Carbon Intensity Indicator, and Vessel Speed Reduction Incentive Program. We hope this paper can enlighten scholars interested in this area and provide help for them.