Green ports or green paradox? Empirical evidence from Norwegian port municipalities
-
DOIhttp://dx.doi.org/10.21511/ee.16(4).2025.07
-
Article InfoVolume 16 2025, Issue #4, pp. 95-120
- 9 Views
-
1 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Type of the article: Research Article
Abstract
This study investigates whether public investment in green maritime infrastructure and transportation projects contributes to CO₂ emission reductions in Norwegian port municipalities. Using panel data for 28 coastal municipalities from 2016 to 2023, the analysis assesses the temporal effects of maritime-supported projects, technology development (TransMar) and infrastructure (InfraMar), on local maritime emissions. A two-stage empirical strategy combines lagged panel regressions (OLS, FE, and RE) with unsupervised clustering to uncover structural heterogeneity in port activity and investment profiles. The results reveal that transport-related investments exhibit statistically significant emission-reducing effects with lags of three to five years, supporting the long-term decarbonization potential of targeted funding. In contrast, green infrastructure presence correlates positively with emissions, likely reflecting higher port activity and policy targeting in high-emission areas. Clustering analysis confirms that municipalities differ substantially in activity levels, investment patterns, and emission profiles, reinforcing the case for differentiated policy strategies. The findings contribute to environmental economics and maritime policy by offering new micro-level evidence on the effectiveness and temporal dynamics of green investments. This paper extends previous literature by integrating spatial clustering with dynamic investment modeling, providing novel insights into how policy timing and local industrial structure shape emission outcomes. The results have direct implications for designing adaptive, region-specific maritime decarbonization programs and guiding future EU-aligned infrastructure strategies.
- Keywords
-
JEL Classification (Paper profile tab)Q58, L92, H54
-
References55
-
Tables8
-
Figures14
-
- Figure 1. Domestic greenhouse gas emissions of CO2 equivalents from Norwegian activity
- Figure 2. Domestic transport work including cabotage1 transport
- Figure 3. Estimated CO₂ emissions from Norwegian domestic shipping, by segment, 2021–2024
- Figure 4. Total number of ships in the sailing fleet
- Figure 5. Number of ships with green technologies in the sailing fleet
- Figure 6. Order book of low and zero-emissions ships
- Figure 7. Shore power and charging capacity and production capacity for alternative fuels
- Figure 8. Availability of green maritime infrastructure and port coverage in Norway
- Figure 9. Categorization of government instruments targeting climate-friendly energy technology by Technology maturity level (TRL) and Commercial readiness index (CRI)
- Figure 10. Dendrogram for HR cluster analysis
- Figure B1. Norwegian port activity, 2023
- Figure B2. Green infrastructure availability
- Figure B3. Green maritime infrastructure funding, 2016–2023
- Figure B4. Green maritime transport funding, 2016–2023
-
- Table 1. Accumulated investment needs in Norwegian domestic shipping, MNOK (2022–2030)
- Table 2. The measurement and data source of explanatory variables
- Table 3. Descriptive statistics
- Table 4. Correlation insights
- Table 5. Three distinct municipal typologies
- Table A1. Regression results (Main specification and extended controls)
- Table A2. The regression results of POLS, RE, FE model
- Table B1. Variation in maritime CO₂ emissions, green investments, and port activity across port municipalities. 2016–2023
-
- Cholidis, D., Sifakis, N., Chachalis, A., Savvakis, N., & Arampatzis, G. (2025). Energy transition framework for nearly zero-energy ports: HRES planning, storage integration, and implementation roadmap. Sustainability, 17(13), Article 5971.
- Daniel, E. I., Makokha, A., Ren, X., & Olatunji, E. (2025). Digital transitions of critical energy infrastructure in maritime ports: A scoping review. Journal of Marine Science and Engineering, 13(7), Article 1264.
- DNV. (2019a). Underlag til handlingsplan for grønn skipsfart – Barometer for grønn omstilling av skipsfarten, prosjektnr. 2019-0080 [Background to the action plan for green shipping – Barometer for green transformation of shipping, project no. 2019-0080]. Klima- og miljødepartementet – Ministry of Climate and Environment. (In Norwegian).
- DNV. (2020a). Forbedring av omstillingsbarometer – Oppfølging av handlingsplan for grønn skipsfart, rapportnr. 2020-1083 [Improving the conversion barometer – Follow-up of the action plan for green shipping, report no. 2020-1083]. (In Norwegian). Klima- og miljødepartementet – Ministry of Climate and Environment. (In Norwegian).
- DNV. (2020b). Ports: Green gateways to Europe. 10 transitions to turn ports into decarbonization hubs.
- DNV. (2022). Barometer for grønn omstilling av skipsfarten 2021, rapportnr. 2021-1266 [Barometer for the green transition of shipping 2021, report No. 2021-1266]. Klima- og miljødepartementet – Ministry of Climate and Environment. (In Norwegian).
- DNV. (2023). Barometer for grønn omstilling av skipsfarten 2022, rapportnr. 2022-1359 [Barometer for the green transition of shipping 2022, report No. 2022-1359]. Klima- og miljødepartementet – Ministry of Climate and Environment. (In Norwegian).
- DNV. (2024a). Barometer for grønn omstilling av skipsfarten 2023, rapportnr. 2023-0944 [Barometer for the green transition of shipping 2023, report no. 2023-0944]. Klima- og miljødepartementet – Ministry of Climate and Environment. (In Norwegian).
- DNV. (2024b). Electrification of European ports (EU). Status for onshore power supply in selected EU ports, European Federation for Transport and Environment A.I.S.B.L (Report No. 2024-1792, Rev. 1).
- DNV. (2024c). Energy Transition Outlook (ETO).
- DNV. (2025a). Barometer for grønn omstilling av skipsfarten 2024, rapportnr. 2024-2126 [Barometer for the green transition of shipping 2024, report no. 2024-2126]. Klima- og miljødepartementet – Ministry of Climate and Environment. (In Norwegian).
- DNV. (2025b). LNG powers unprecedented year for orders of alternative-fuelled vessels.
- Enova. (2023). Landstrømsystem i eksisterende fartøy [Support schemes for maritime transport and shore power]. (In Norwegian).
- Enova. (n.d.). Prosjektliste 2012–2024 [Project list 2012–2024]. (In Norwegian).
- EPI. (n.d.). Environmental Port Index – EPI.
- Equinor. (n.d.). Northern Lights Project Overview.
- Erraia, J., Hernes, S., Lunde, A., Hole, I., Winje E., & Handberg, Ø. (2024). Veien Til 2030: Investeringer for å møte norges klimamål [The Road to 2030: Investments to meet Norway’s climate goals] (Menon-publikasjon Nr. 67/2024). Menon. (In Norwegian).
- ESI. (n.d.). Environmental Ship Index Database.
- European Commission (EC). (2025, January 10). New EU rules aiming to decarbonise the maritime sector take effect.
- Grytten, O. H., Lindmark, M., & Minde, K. B. (2020). The wealth of nations and sustainable development: Energy intensity and the environmental Kuznets curve. Environmental Economics, 11(1), 110-123.
- IMO. (2023, July 7). Revised GHG reduction strategy for global shipping adopted.
- Khaustova, V., Kyzym, M., Hubarieva, I., Kotliarov, Y., Salashenko, T., & Khaustov, M. (2024). Tracking the European transition from fuel dependence to sustainable mobility. Environmental Economics, 15(2), 164-184.
- KLP. (2023). Grønt skipsfartsprogram. Finansieringsløsninger for grønn maritim infrastruktur for institusjonelle investorer [Green Shipping Program. Financing solutions for green maritime infrastructure for institutional investors]. (In Norwegian).
- Koilo, V. (2019). Sustainability issues in maritime transport and main challenges of the shipping industry. Environmental Economics, 10(1), 48-65.
- Koilo, V. (2020). Energy efficiency and green solutions in sustainable development: Evidence from the Norwegian maritime industry. Problems and Perspectives in Management, 18(4), 289-302.
- Koilo, V. (2021). Developing new business models: Logic of network value or cross-industry approach. Problems and Perspectives in Management, 19(2), 291-307.
- Koilo, V. (2024). Unlocking the sustainable value with digitalization: Views of maritime stakeholders on business opportunities. Problems and Perspectives in Management, 22(1), 401-417.
- Koilo, V. (2025). Macroeconomic and energy impacts of Russia’s invasion of Ukraine: A comparative analysis across countries. Geopolitics under Globalization, 5(1), 19-34.
- Kystens Næringsliv. (2025). Markedet har mistet troen. Enova fortsetter å øse ut penger. хThe market has lost faith. Enova continues to pour money into it]. (In Norwegian).
- Maritime Forum. (n.d.). Rapporter [Reports]. (In Norwegian).
- Mohite, A. A., & Mathew, E. (2025). Exploring the necessary upgrades in port infrastructure to accommodate and support the operation of the next-generation green ships. Marine Systems & Ocean Technology, 20, Article 26.
- Munim, Z. H., & Schramm, H. J. (2018). The impacts of port infrastructure and logistics performance on economic growth: The mediating role of seaborne trade. Journal of Shipping and Trade, 3.
- Naumenkova, S., Mishchenko, S., Tishchenko, I., & Mishchenko, V. (2025). Government support for addressing energy poverty in the context of low-carbon transition. Public and Municipal Finance, 14(2), 64-82.
- Norwegian Coastal Administration. (n.d.). Norwegian ports statistics. (In Norwegian).
- Norwegian Confederation of Enterprise. (2024). Sjø og havn: hvor står vi i 2024? Rapport 1/2024 [Sea and port: where do we stand in 2024? Report 1/2024]. (In Norwegian).
- Norwegian Environment Agency. (2020). Klimakur 2030: Tiltak og virkemidler [Climate Cure 2030: Measures and instruments]. Miljødirektorat. (In Norwegian).
- Norwegian Environment Agency. (n.d.). Utslipp av klimagasser i kommuner og fylker [Greenhouse gas emissions in municipalities and counties]. Miljødirektorat.
- Norwegian Government. (2013). National Transport Plan 2014-2023 (Meld. St. 26 (2012–2013) [Report to the Storting (White Paper) Summary)]. Norwegian Ministry of Transport and Communication.
- Norwegian Government. (2019). The Government’s action plan for green shipping (Action Plan).
- Norwegian Shipowners’ Association (2025). Maritime Outlook 2025.
- Office of the Auditor General. (2025). Investigation of port infrastructure security in Norway.
- Plastun, A., Makarenko, I., Huliaieva, L., Guzenko, T., & Shalyhina, I. (2023). ESG vs conventional indices: Comparing efficiency in the Ukrainian stock market. Investment Management and Financial Innovations, 20(2), 1-15.
- Rodrigue, J., Slack, B., & Comtois, C. (2017). The paradoxes of green logistics. In A.M. Brewer, K.J. Button & D.A. Hensher (Eds.), Handbook of logistics and Supply-Chain Management (pp. 339-350).
- Sæther S., & Moe, E. (2021). A green maritime shift: Lessons from the electrification of ferries in Norway. Energy Research & Social Science, 81, Article 102282.
- Sang, J., & Pan, L. (2024). Impact of green infrastructure investment on urban carbon emissions in China. Sustainability, 16(7), Article 2668.
- Sogut, M. Z., & Erdoğan, O. (2022). An investigation on a holistic framework of green port transition based on energy and environmental sustainability. Ocean Engineering, 266(3), Article 112671.
- Song, L., & van Geenhuizen, M. (2014). Port infrastructure investment and regional economic growth in China: Panel evidence in port regions and provinces. Transport Policy, 36, 173-183.
- Sotnychenko, L., & Sivan, A. (2021). Investytsiini potreby ta finansuvannia portovoi infrastruktury [Investment needs and port infrastructure financing]. Economic Herald of the Donbas, 3(65). (In Ukrainian).
- Statistics Norway. (n.d.a). Utslipp til luft [Emissions to air]. (In Norwegian).
- Statistics Norway. (n.d.b). Domestic transport.
- Statistics Norway. (n.d.c). Maritime transport.
- Tagawa, H., Sugishita, Y., & Hanaoka, S. (2025). Impact of port cooperation on port competitiveness and network structure: A case study of Osaka and Kobe ports. Journal of Shipping and Trade, 10, Article 15.
- Transport & Environment. (2025). European ports unplugged: The state of shore power deployment. Assessing EU ports’ readiness for shore power requirements.
- Vasa, L., Kubatko, O., Sotnyk, I., Piven, V, Trypolska, G., & Pysmenna, U. (2024). Economic and environmental drivers of renewable energy transition in the EU. Environmental Economics, 15(2), 232-245.
- Versal, N., & Sholoiko, A. (2022). Green bonds of supranational financial institutions: On the road to sustainable development. Investment Management and Financial Innovations, 19(1), 91-105.


