Carbon Regulations and Second-Hand Ship Prices: An Empirical Analysis of Emission Intensity Effects

This study analyzes the econometric correlation between resale prices and CO2 emissions of 832 bulk carriers sold from 2018 to 2025. It uses a cross-sectional hedonic pricing model to look at how environmental performance affects the value of sub-types of dry bulk vessels (Capesize, Panamax, Supramax, and Handysize) and age groups (0–5, 6–10, 11–15, and 16+). The findings show that emission efficiency has a statistically significant and negative effect on second-hand prices for all models. Results indicate that higher emission intensity (higher technical efficiency values) reduces vessel values. The magnitude of this effect varies by ship type and age group. Based on the Technical Efficiency Indicator (TEI), refers to Energy Efficiency Existing Ship Index (EEXI) or Energy Efficiency Design Index (EEDI) coefficients, the Supramax segment appears to be the most price-sensitive, followed by Panamax, Capesize, and Handysize. Age has a consistently negative and significant effect on prices, while vessel size positively affects asset values. Further analysis shows that TEI levels increase with vessel age, whereas they decrease with larger vessel size and more recent measurement years. These results are consistent with tightening regulatory pressures under the International Maritime Organization (IMO) frameworks. The economic implications of IMO’s environmental regulations on carbon intensity indicate that compliance with regulation standards creates a measurable price differential in the second-hand ship market. These findings have important implications for shipowners’ investment strategies, regulatory policy design, and the decarbonization path of the maritime sector. This study contributes to the growing research on environmental economics in maritime transport by providing empirical evidence on how carbon regulations translate into tangible asset value impacts.