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Transportation Research Part D
The article analyses the investments efficiency of sulphur oxide (SOx) scrubber installation to comply with the requirements of MARPOL 73/78 Annex VI, which sets 0.1% SOx limits in 2015 in Emission Control Area (ECA) and 0.5% in 2020 globally. There are two most realistic technologies to reduce SOx emission suitable for existing fleet: low sulphur fuel; scrubber. Mentioned technologies are compared and economic issues of each are analyzed in the article. The comparison of the technologies shows that no matter which technology will be selected each will require the additional costs: capital and operating costs, loss of profits due to the reduce of cargo capacity. That is why the technology introduction will be considered as investments in the article. Each of mentioned technology has certain specific of the investments. Therefore, the evaluation of the investments efficiency should be carried out by comparing the different technologies (in our case scrubber and low sulphur fuel) that meet the requirements of MARPOL 73/78. Investments efficiency in technology will be evaluated by cash flow modeling during the billing period covering the time interval from the technology introduction to the completion of use. The concept of cash flow allows forming a systematic view of funding and determining the dynamics of the financial effects at the each stage of technology introduction. In turn, a comparative analysis of technologies will identify the best option of investment applying to a particular ship.