New article by Ådland

6 April 2018 12:40

New article by Ådland

The article "Does energy efficiency affect ship values in the second-hand market?" has been published in Transportation Research Part A: Policy and Practice.

Transportation Research Part A: Policy and Practice is on level 3 in the ABS Academic Journal Guide.

Ådland, Roar Os, Pierre Cariou, and François-Charles Wolff: Does energy efficiency affect ship values in the second-hand market? Transportation Research Part A: Policy and Practice, 2018, 111, 347-359, Online 02.04.2018.

Abstract

This paper investigates whether the energy efficiency of vessels is reflected in sales prices in the second-hand market. Using unique data of nearly 1600 sales transactions over a 21-year period, we consider a hedonic pricing framework in which we control for market conditions, vessel specifications and buyers’ country of origin to identify the specific impact from energy efficiency. Using two indicators for energy efficiency, we find a negative relationship between energy efficiency and sale price with an elasticity around 0.4. Furthermore, our results show a reduction in the influence of energy efficiency on asset values during the drybulk market boom in 2003–2008 compared to the remainder of the sample.