Does it Pay to be Green? Investigating Alternative Fuels Impact on Vessel Value

With a rising awareness of climate change and Greenhouse Gas (GHG) emissions, there has been a push towards alternative fuels in the maritime industry. In this paper, we use linear and adaptive lasso regression on a novel dataset of transactions in the second-hand market for gas carriers to investigate the effect of fuel choice on vessel value. We find evidence that choosing alternative fuels does not affect the vessel’s value either positively or negatively.