Tier III regulations in The Baltic and North Sea: Difficulties with implementing regulations and the impact on the volume and price of urea
MetadataShow full item record
In recent years, international organisations have increased their efforts to examine how they can achieve policy objectives more cost-effectively through better regulation or different mixes of policy tools. The concept of this research project was to conduct a study based on the constructivist approach of the grounded theory research method, aimed at developing a model for the efficient implementing of NOx regulations in The Baltic and North Sea. During the data collection, an additional research question was raised concerning the effect of the regulations on the marine urea price. Findings were obtained by the means of in-depth interviews, conducted with government representatives, executives of international maritime companies, technical managers and techno-distribution companies. Specifically, the study seeks to identify the following issues: industries’ opinion regarding postponement of the implementation date; what stimulates the shipping companies to use NOx abatement technology; if the future model may benefit from looking at the international practices of NOx regulations implementation; what features should the efficient implementation model have; and how the regulations may affect the marine urea market. Overall findings led the study to suggest a model based on a combination of the present implementation method and a fund, inspired by the Norwegian NOx Fund. In addition, the study revealed an increasing demand for marine urea after the Tier III implementation. Notwithstanding the future fertilizer index, the costs of marine urea production and distribution are expected to be lower, resulting in a lower total customer price.