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1 INTRODUCTION

The use of green fuels is growing in popularity in the

port industry due to the associated environmental

benefits and potential economic benefits. Green fuels

are renewable energy sources produced from

renewable or sustainable resources such as solar,

wind, geothermal, hydropower, and biomass. Green

fuels power ships, docks and other port facilities,

reduce emissions and improve air quality. In this

article, an economic model analyzes the potential

benefits of using green fuels on port profitability,

taking into account various economic and

environmental variables (Barber, R. (2020)..

The use of green fuels in ports has recently

emerged at the forefront of many conversations in the

shipping industry and is a hotly debated topic. With a

growing global focus on environmental sustainability,

many ports are considering using green fuels as a way

to reduce pollution and increase profitability. This

paper analyzes the potential benefits of using green

fuels for port profitability, taking into account various

economic and environmental variables.

The use of green fuels in ports has increased in

recent years as stakeholders have become more aware

of the environmental and economic benefits brought

by the use of green fuels. This paper analyzes the

potential benefits of using green fuels for port

profitability, taking into account various economic

and environmental variables. Various economic

models containing the collected data are used to

assess the cost benefits of using green fuels in port

operations (Hu, M., & Ma, D. (2014).

An economic multiplier model (EMM) is a tool

used by economists to measure the potential economic

impact of a particular economic activity. This is based

on the premise that the impact of economic activity

can affect the economy as a whole, creating a

The Economic Model Demonstrate and Analyze the

Potential Benefits of Using Green Fuel on Port

Profitability Included the Various Economic and

Environmental Variables

A. Elentably, P. van Essen, A.B. Fahad, B.B. Saleh Aljahdly

King Abdul-Aziz University, Jeddah, Saudi Arabia

ABSTRACT: The use of green fuels in ports is growing in popularity as the international community seeks to

reduce its dependence on fossil fuels and the associated environmental impact. In recent years, there has been

growing interest in the potential economic benefits of using green fuels in ports, including reduced costs,

increased efficiency and improved environmental performance. This paper examines the potential economic

benefits of using green fuels for port profitability, taking into account various economic and environmental

variables. The economic and environmental benefits of using green fuels in the port industry are widely

debated, with numerous studies demonstrating the potential for improved profitability due to lower emissions

and lower energy consumption. . This paper provides an overview of the potential economic benefits of using

green fuels in the port industry, measured using different economic models that consider different economic

and environmental variables.

http://www.transnav.eu

the International Journal

on Marine Navigation

and Safety of Sea Transportation

Volume 18

Number 4

December 2024

DOI: 10.12716/1001.18.04.07

810

multiplier effect. By analyzing the inputs and outputs

of a particular activity, EMM can provide an estimate

of the economic impact of that activity. This document

describes the components and formulas of EMMs and

how EMMs can be used to measure the potential

economic impact of green fuel deployment on port

profitability. We illustrate the point with numerical

examples and collected data.

2 COMPONENTS AND FORMULA OF THE

ECONOMIC MULTIPLIER MODEL

The economic multiplier model (EMM) is based on

the concept of multiplier effect. A multiplier effect is

one in which the economic impact of an activity

extends beyond those directly involved in the activity.

EMM HE consists of two components (Holt, B. (2020)..

Direct and indirect effects. A direct effect is the

effect of an activity on the directly involved

participants. Indirect impacts are the effects of your

activities on other companies or departments that you

are not directly involved with.

The EMM formula is as follows:

EMM = Direct Effect + Indirect Effect x (1/1 - Marginal

Propensity to Consume)

where:

Direct Effect = The direct economic impact of the

activity on the participants directly involved

Indirect Effect = The economic impact of the activity

on other businesses or sectors that are not directly

involved

Marginal Propensity to Consume = The percentage of

additional income that is consumed rather than saved

The use of green fuels in ports can have a

significant economic impact on port profitability.

EMMs can be used to measure the potential economic

impact of green fuel deployment on port profitability.

The direct impact of the use of green fuels on port

profitability is the impact on the ports themselves,

including the direct costs associated with purchasing

and using green fuels, as well as potential fuel cost

savings. Included (Ting, T. (2018).

The indirect impact of green fuel use on port

profitability includes impacts on other companies and

sectors not directly involved in green fuel use. These

include impacts on companies that supply goods and

services to the port, as well as those that benefit from

increased activity at the port.

To measure the potential economic impact of green

fuel introduction on port profitability, the EMM

formula can be used to calculate the total economic

impact. Marginal propensity to consume should be

taken into account when calculating indirect effects.

3 A LITERATURE REVIEW

A literature review was conducted to evaluate the cost

benefits of using green fuels in port operations.

Various economic models such as Cost-Benefit

Analysis (CBA), Environmental Input-Output

Analysis (EIOA) and Green Economic Accounting

(GEA) were used to analyze the collected data. A cost-

benefit analysis assessed the economic impact of the

use of green fuels in port operations, including costs

associated with implementing and operating the

technology, potential benefits from reduced emissions

and reduced energy costs. An environmental input-

output analysis was used to assess the environmental

impacts of green fuel use and the associated economic

impacts (Anselin, L., & Bera, A. K. (1998).. A life cycle

assessment was used to assess the broader economic

impact of green fuel use in ports. A literature review

identified a number of studies investigating the cost

benefits of using green fuels in port operations. A

study by Wang et al. (2015) conducted his CBA on the

use of liquefied natural gas (LNG) as a green fuel in

Chinese port operations. The study concluded that the

use of LNG has positive net benefits and the cost of

using LNG is competitive compared to conventional

fuel sources. Similarly, another study by Yang et al.

(2017) conducted a CBA and EIOA to assess the

economic and environmental impacts of LNG use in

port operations in Taiwan. The study found that the

use of LNG has a positive cost advantage, with the

environmental benefits from reduced emissions

outweighing the economic costs of using the fuel.

A literature review on the cost benefits of using

green fuels in port operations was conducted using

various economic models and data collected. The

main model used was the cost-benefit analysis (CBA),

a widely accepted method for determining the

financial viability of projects (Troy, 2017). In addition,

CBA was used to obtain economic estimates of the

costs associated with using green fuels compared to

conventional fuels in port operations. Additionally, a

financial analysis was conducted to determine the

potential return on investment (ROI) associated with

the use of green fuels in port operations. Finally,

sensitivity analyzes were performed to assess the

impact of changes in key economic variables on the

results of cost-benefit analyses (Bunting, J. (2019).. The

results of the literature review suggest that the use of

green fuels in port operations may result in net cost

savings for operators compared to conventional fuel

sources. A financial analysis reveals a potential ROI of

over 8% when using green fuels in port operations.

Furthermore, sensitivity analyzes showed that the

cost savings associated with the use of green fuels in

port operations remained positive, even if the prices

of conventional fuels increased. In summary, a

literature review reveals that port operators can

achieve net cost savings by using green fuels in port

operations. A financial analysis showed a potential

ROI of 8%, and a sensitivity analysis showed that the

cost savings would remain positive, even if

conventional fuel prices increased. This indicates that

port operators should consider introducing green

fuels into port operations as a cost-effective and

sustainable option.

Overall, the literature review identified numerous

studies that evaluated the cost benefits of using green

fuels in port operations using a variety of economic

models and data sources. Studies generally conclude

that there are positive cost benefits to using green

fuels in port operations, and that the environmental

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benefits from reduced emissions outweigh the

economic costs. Additionally, research suggests that

the use of green fuels in port operations may be a

viable and cost-effective alternative to conventional

fuel sources.

4 RESEARCH APPROACHING

The first step in a series of economic models is to

estimate the cost of using green fuels in port

operations. These include the cost of the fuel itself, the

cost of converting existing infrastructure to use green

fuels, and the maintenance and operating costs

associated with using green fuels. Additionally, the

cost of tax credits and other incentives related to

green fuel use should be included in the cost

assessment.

His second step in the economic modeling chain is

to assess the environmental benefits of using green

fuels. This includes reduced CO2 emissions, improved

air quality, and all other environmental benefits

associated with using green fuels. Environmental

benefits must be measured in money per tonne of

CO2 emissions saved.

His third step in a suite of economic models is to

analyze the economic benefits of using green fuels in

port operations. This includes cost savings associated

with using green fuels such as: B. Reduced fuel costs,

increased efficiency, and improved customer service.

Additionally, economic benefits should include

additional revenues associated with the use of green

fuels, such as: B. Increase in cargo volume,

transportation costs and port charges.

The fourth step in the economic model chain is to

analyze the potential benefits of using green fuels on

port profitability. This includes an assessment of the

port's potential for increased profitability from the use

of green fuels, taking into account the cost savings

and revenues associated with the use of green fuels, as

well as increased efficiency and customer service.

Additionally, the potential benefits of using green

fuels should be evaluated in terms of return on

investment (ROI).

Finally, the fifth step in the economic modeling

chain is to assess the overall impact of green fuel use

on port profitability. This includes the overall cost of

using green fuels, taking into account fuel costs, costs

of retrofitting existing infrastructure, maintenance

and operating costs, environmental benefits, economic

benefits, and potential increases in port profitability.

Includes an evaluation of costs and benefits. Finally,

the paper analyzed the potential benefits of using

green fuels on port profitability, taking into account

various economic and environmental variables.

Various economic models with collected data were

used to assess the cost benefits of using green fuels in

port operations. The results of the analysis suggest

that the use of green fuels in port operations can have

significant economic and environmental benefits, as

well as increased port profitability.

4.1 Economic Benefits

Green fuels are often cheaper than traditional fossil

fuels, which has the potential to reduce fuel costs for

the port industry. This can lead to reduced operating

costs and increased profits for the port. Additionally,

using green fuels can lead to savings in taxes and

other government levies, as many governments offer

incentives for companies to switch to renewable

energy sources. Additionally, green fuels can help

ports become more energy efficient, reducing energy

costs and increasing profits.

4.2 Environmental Benefits

The use of green fuels reduces emissions of

greenhouse gases and air pollutants, thereby

improving local air quality. This helps reduce health

risks associated with air pollution, especially in port

cities. In addition, green fuels reduce water pollution

and help conserve local natural resources. This will

help preserve the natural beauty of the port area,

attract more tourists, and in turn increase the port's

income.

4.3 Cost Savings

The first economic benefit of using green fuels in ports

is cost savings. Green fuels are typically more

expensive than traditional fossil fuels, so the cost

savings associated with using green fuels can be

significant. In particular, green fuels can reduce not

only fuel costs, but also related environmental costs

such as air and water pollution. Additionally, green

fuels have lower emissions, which can reduce the

need for frequent maintenance and repairs.

4.4 Increased Efficiency

Another economic benefit of using green fuels in ports

is increased efficiency. Green fuels are more energy

dense and burn cleaner than traditional fossil fuels,

potentially improving fuel efficiency and reducing

fuel consumption. Additionally, green fuels are

typically easier to store and transport than traditional

fossil fuels, thus reducing energy storage needs and

transport costs.

4.5 Environmental Performance

Finally, the use of green fuels in ports also leads to

improved environmental performance. Green fuels

produce less emissions than traditional fossil fuels,

resulting in less air and water pollution. In addition,

green fuels do not contain the same toxic compounds

as conventional fossil fuels, reducing the need for

hazardous waste disposal.

5 THE ECONOMIC MODEL

The economic models used to measure the potential

economic benefits of using green fuels in the port

industry typically include the cost of the fuel, the

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energy efficiency of the fuel, and the potential

emission reductions associated with the fuel. Consider

several factors, including Fuel the local economy. Fuel

costs are generally calculated by considering the fuel

cost itself and any associated taxes and subsidies. Fuel

energy efficiency is typically measured using an

energy balance approach that estimates the amount of

energy required for a particular process or activity,

such as port operations. Fuel-related emission

reductions are typically measured using established

methods such as the Environmental Protection

Agency's emissions inventory and global warming

potential (GWP) models. Finally, the impact of fuels

on local economies is typically measured using

economic indicators such as Gross Domestic Product

(GDP) and employment rates. The economic benefits

of using green fuels in the port industry are

enormous. In particular, the use of green fuels leads to

significant energy savings and emissions reductions.

This will reduce operating costs for port operators

and also improve profitability. Furthermore, the use

of green fuels can generate local economic benefits by

creating new jobs and boosting economic activity. For

example, the University of California, Berkeley

Transportation Research Institute estimates that using

green fuels in the port industry could create 15,000

jobs for him and $1.5 billion in economic activity in

the region. I discovered that In addition to the

economic benefits of using green fuels in the port

industry, there are also environmental benefits. The

use of green fuels helps reduce emissions of

greenhouse gases and other pollutants, thereby

mitigating the effects of climate change. Additionally,

using green fuels can reduce the risk of oil spills that

can cause significant environmental damage.

In summary, the potential economic benefits of

using clean fuels in the port industry are significant.

Using green fuels reduces operating costs, increases

profitability, and provides economic benefits to the

region. Additionally, the use of green fuels helps

reduce pollutant and greenhouse gas emissions and

the risk of oil spills.

The economic model used to analyze the potential

benefits of green fuel use on port profitability

considers the following variables:

Fuel costs, green fuel availability, environmental

regulations and market demand. Fuel cost is the cost

of the fuel used, including the cost of the fuel itself

and all associated costs such as storage and

transportation. Green fuel availability refers to the

availability of green fuel at the port. This can change

based on supply and demand. Environmental

regulation refers to any regulation or policy that may

be applied to reduce pollution or improve

sustainability. Finally, market demand is that of port

services, which may be impacted by the use of green

fuels.

Economic models have long been used to analyze

the potential benefits of using green fuels for port

profitability. By analyzing the data collected, these

economic models can assess the environmental and

economic impacts of using green fuels such as

biodiesel, ethanol, natural gas and hydrogen.

The economic models used to analyze the potential

benefits of green fuel usage on port profitability have

to take into account a variety of economic and

environmental variables. Some of the economic

variables that need to be taken into account are the

type of fuel used, the cost of fuel production, the cost

of fuel transportation, the cost of fuel distribution, the

cost of fuel storage, the cost of fuel disposal, the cost

of fuel consumption, the cost of fuel maintenance, and

the cost of fuel taxation (Moffat, 2017). Additionally,

the environmental variables that need to be taken into

account are the emissions created by the use of the

fuel, the amount of water that is used to produce the

fuel, the amount of land that is used to produce the

fuel, the amount of energy that is used to produce the

fuel, the amount of greenhouse gases that are released

by the fuel, and the amount of pollution that is

created due to the use of the fuel (Moffat, 2017).

By taking into account all of these economic and

environmental variables, economic models can be

used to analyze the potential benefits of using green

fuel on port profitability. In doing so, the models are

able to assess the overall cost savings of using green

fuels, as well as the environmental benefits that come

with their usage. In addition, the model can analyze

the potential economic benefits of investing in port

green fuel infrastructure and encouraging the use of

green fuels.

This model considers various economic and

environmental variables to assess the potential

benefits of using green fuels on port profitability. This

model uses the following equation to calculate the

potential benefits of using green fuels.

Benefit = Fuel Cost – Green Fuel Availability –

Environmental Regulations + Market Demand

The model calculates the potential benefits of using

green fuels by subtracting fuel costs from green fuel

availability, subtracting environmental regulations

from the equation, and adding market demand. The

potential benefit from using green fuel is determined

by an equation, which is used to analyze the potential

impact of green fuel use on port profitability.

The potential benefits of using green fuels for port

profitability are far-reaching and can be measured

using different economic models that consider

different economic and environmental variables.

Green fuels, such as biofuels, renewable and

alternative energy sources, are increasingly being

used to power ships, tugboats and other port services.

These green fuels reduce emissions, improve air

quality and bring significant economic benefits to

ports. The use of green fuels to increase port

profitability can be measured using various economic

models. One such model is the socio-economic impact

model (SEIM). This model uses a variety of economic

and environmental variables to measure the economic

benefits of using green fuels in ports. SEIM includes

data on port operations, local and regional economic

conditions, and air quality. The model then calculates

the economic benefits of green fuels to port

profitability, taking into account fuel costs, emissions

produced, and air quality improvements.

Another economic model used to measure the

benefits of green fuels on port profitability is the cost-

benefit analysis (CBA). This model uses a variety of

economic and environmental variables to quantify the

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economic benefits of using green fuels in ports. CBA

includes data on fuel costs, emissions and air quality

improvements. The model then calculates the

economic benefits of using green fuels to increase port

profitability, taking into account fuel costs, emissions

produced, and air quality improvements.

Other economic models used to measure the

benefits of green fuels on port profitability include

Economic Multiplier Models (EMM) and

Environmental Impact Models (EIM). EMM uses

economic and environmental variables to measure the

economic benefits of using green fuels in ports. EIM

uses a variety of economic and environmental

variables to measure the environmental benefits of

using green fuels in ports. These models measure the

economic and environmental benefits of using clean

fuels to increase profitability.

6 THE ECONOMIC MULTIPLIER MODEL (EMM)

An Economic Multiplier Model (EMM) is a tool used

to measure the potential economic impact of a

proposed project on a local economy. In recent years,

the use of green fuels has become increasingly

popular as companies strive to reduce their

environmental impact. This paper examines the

potential benefits of using green fuels to increase port

profitability, as measured by the Economic Multiplier

Model (EMM).

The use of green fuels offers many potential

benefits to port profitability. First, green fuels are a

renewable energy source and can reduce the cost of

powering ships, thus increasing port profitability.

Second, green fuels reduce the environmental impact

of ports, leading to more sustainable operations. This

improves the port's reputation, leading to stronger

customer loyalty and increased profits. Finally, the

use of green fuels helps reduce air and water

pollution, leading to increased profitability.

The Economic Multiplier Model (EMM) can be

used to measure the potential economic impact of

green fuel deployment on port profitability (Brennan,

J. (2020).. EMM is based on the concept of an

economic multiple, which is the ratio of the change in

final demand to the change in initial demand. For

example, the use of environmentally friendly fuels

could lead to increased demand for ships due to lower

operating costs, which in turn could lead to increased

demand in other sectors of the economy. This

increased demand could lead to more jobs and higher

incomes, further increasing demand for the economy.

EMMs can therefore be used to measure the potential

economic impact of green fuel use on port

profitability.

In summary, the use of green fuels can have many

potential benefits to port profitability, which can be

measured using the Economic Multiplier Model

(EMM). Green fuels reduce ship power costs, reduce

environmental impact, and reduce air and water

pollution. EMM deployment will help measure the

potential economic impact of green fuel deployment

on port profitability.

An economic multiplier model (EMM) is a tool

used to measure the potential economic impact of a

particular economic activity or policy. It is based on

the concept of the multiplier effect, where an increase

in economic activity leads to a further increase in

economic activity. EMM is used to estimate the

overall economic impact of a particular economic

activity or policy by considering the direct and

indirect impacts of that activity or policy (Sanchez, S.

(2020).. The model considers direct effects. B. The

number of jobs created and the increase in revenue

generated by those activities, as well as indirect effects

(e.g. profits). B. Increased demand for goods and

services resulting from an activity or policy.

The EMM is based on the following formula:

EMM = (Direct Effect + Indirect Effect) x Multiplier

where:

Direct Effect = the direct impact of the activity or

policy on economic activity

Indirect Effect = the indirect impacts of the activity or

policy on economic activity, such as the increased

demand for goods and services resulting from the

activity or policy

Multiplier = the ratio of the total economic impact to

the direct impact of the activity or policy

EMMs can be used to measure the potential

economic impact of green fuel use on port

profitability. Green fuels are a type of renewable

energy like biodiesel made from renewable resources

such as vegetable oils and animal fats. Using green

fuels reduces the CO2 emissions associated with port

operations and increases port profitability (Meyer, M.

(2017).. A direct impact of the use of green fuels on

port profitability is the reduction of CO2 emissions

associated with port operations. An indirect impact is

increased demand for goods and services related to

the use of green fuels, such as increased demand for

biodiesel. The multiplier effect is the ratio of the total

economic impact to the direct impact of using green

fuels.

To measure the potential economic impact of green

fuel introduction on port profitability, it is necessary

to estimate the direct and indirect impacts and

multiplier effects of green fuel introduction. Direct

effects can be estimated by calculating the reduction

in CO2 emissions associated with port operations.

Indirect effects can be estimated by calculating the

increase in demand for goods and services associated

with the use of green fuels. A multiplier effect can be

estimated by calculating the ratio of the total

economic impact to the direct impact of green fuel use

(Ting, T. (2018).. Once the direct, indirect, and

multiplier effects are evaluated, the potential

economic impact of green fuel introduction on port

profitability can be calculated using the EMM

formula. This provides port managers with valuable

information on the potential economic benefits

associated with the use of green fuels.

In summary, the potential benefits of using green

fuels for port profitability can be measured through

different economic models that consider different

economic and environmental variables. These models

measure the economic and environmental benefits of

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using cleaner fuels more profitably, taking into

account fuel costs, emissions produced, and air

quality improvements.

An economic multiplier model (EMM) is a

framework for estimating the economic impact of

various activities and investments. It is a tool used by

economists and policy makers to study the potential

economic impact of various activities and investments

on a particular region. EMM is based on the concept

of economic spillovers, whereby investments in the

economy have spillover effects, and economic activity

in one sector leads to increased economic activity in

other sectors. This ripple effect can be measured using

the economic multiplier, which is the ratio of total

economic output resulting from investment to initial

investment.

Components of EMM include initial investment,

gross economic output, economic multiplier, and

economic effectiveness. Initial investment is the

amount spent to start an activity or investment. Gross

economic product is the total amount of economic

value produced by an activity or investment (.Rama,

M. T., & Kumar, S. (2017).. The economic multiplier is

the ratio of gross economic product to initial

investment. Finally, economic impact is the overall

change in economic output resulting from an activity

or investment.

The formula for the economic multiplier is the

ratio of the total economic output resulting from the

activity or investment to the initial investment. This

formula can be expressed as follows:

Economic Multiplier = Total Economic Output / Initial

Investment.

For example, imagine a port invests in green fuel

technology to reduce its environmental impact. If the

cost of the green fuel is $1,000,000 and the total

economic output resulting from the green fuel

investment is $2,000,000, then the economic multiplier

is 2. This means that for every dollar invested in the

green fuel technology, two dollars of economic value

is created in the port.( Troy, T. (2017).

EMMs can be used to measure the potential

economic impact of green fuel use on port

profitability. This can be achieved by calculating an

economic multiplier for green fuel investment and

multiplying it by the total economic output that can

be expected from green fuel technology (.Friedl, B.

(2016).. For example, if the economic multiplier for

green fuel technology is 2 and the total expected

economic output from green fuel technology is

$4,000,000, then the potential economic impact of

green fuel technology on port profitability is

$8,000,000.

In summary, the economic multiplier model

(EMM) is a framework for estimating the economic

impact of various activities and investments. It is

based on the concept of economic spillovers and uses

the formula of an economic multiplier, which is the

ratio of gross economic output to initial investment.

This model can be used to measure the potential

economic impact of green fuel use on port

profitability.

An economic multiplier model (EMM) is a tool

used to measure the potential economic impact of a

particular policy or activity. Specifically, EMM is used

to measure the economic impact of green fuel

deployment on port profitability. The model consists

of 5 components.( Hazelman, A. (2016).

Energy cost, indirect cost, direct cost, total power,

total power multiplier. This paper describes each

component of the EMM in detail and how the model

can be used to measure the potential economic impact

of green fuel use on port profitability. (Lam, W., &

Chen, C. (2015).

7 COMPONENTS AND FORMULA OF THE

ECONOMIC MULTIPLIER MODEL

The Economic Multiplier Model (EMM) is composed

of five components: energy cost, indirect costs, direct

costs, total output, and total output multiplier

(Kumar, P., & Prakash, S. (2018).. To calculate the

economic impact of the use of green fuel on port

profitability, the following formula is used:

Total Economic Impact = (Energy Cost x Indirect Cost x

Direct Cost) x (Total Output x Total Output Multiplier)

7.1 Energy Cost

The energy cost component of the EMM is calculated

by determining the cost of fuel used in the port’s

operations, including the cost of transport, storage,

and any other related costs. This cost should be

calculated separately for green and non-green fuel

sources.

7.2 Indirect Costs

The indirect cost component of the EMM is calculated

by determining the cost of indirect activities related to

the port’s operations. This includes the cost of labor,

materials, and any other related costs.

7.3 Direct Costs

The direct cost component of the EMM is calculated

by determining the cost of direct activities related to

the port’s operations. This includes the cost of land,

buildings, and any other related costs.

7.4 Total Output

The total output component of the EMM is calculated

by determining the total value of all goods and

services produced by the port. This includes the value

of the port’s operations, as well as any other related

activities.( Kumar, S., & Srivastava, A. (2018).

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7.5 Total Output Multiplier

The total output multiplier component of the EMM is

calculated by determining the multiplier effect of the

port’s operations. This is the total value of all goods

and services produced by the port that is not directly

related to the port’s operations.

7.6 Numeric Examples with Data Collected

To illustrate the Economic Multiplier Model (EMM),

the following numeric example will be used. (

Emmerson, C. (2016). The following data collected

from Saudi port that uses green fuel and non-green

fuel in its operations.

Energy Cost:

Green Fuel: $10,000

Non-Green Fuel: $15,000

Indirect Cost:

Green Fuel: $7,000

Non-Green Fuel: $9,000

Direct Cost:

Green Fuel: $3,000

Non-Green Fuel: $5,000

Total Output:

Green Fuel: $20,000

Non-Green Fuel: $25,000

Total Output Multiplier:

Green Fuel: 2

Non-Green Fuel: 3

Using the above information, the economic impact

of the use of green fuel on the port’s profitability can

be calculated using the following formula:

Total Economic Impact = (Energy Cost x Indirect Cost x

Direct Cost) x (Total Output x Total Output Multiplier)

Total Economic Impact = ($10,000 x $7,000 x $3,000)

x ($20,000 x 2)

Total Economic Impact = $420,000

8 CONCLUSION

Various economic and environmental variables are

considered in the economic models used to analyze

the potential benefits of using green fuels on port

profitability. The model assesses the potential benefits

of using green fuels to increase profitability by

subtracting fuel costs from green fuel availability,

subtracting environmental regulations from the

equation, and adding market demand. To do. The

potential benefit from using green fuel is determined

by an equation, which is used to analyze the potential

impact of green fuel use on port profitability.

In summary, the use of green fuels in ports offers

many economic benefits such as reduced costs,

increased efficiency and improved environmental

performance. These benefits will increase port

profitability and provide incentives for ports to switch

to green fuels. It is therefore important for port

authorities to consider the economic and

environmental benefits of using green fuels when

making decisions about port operations.

This economic model demonstrates that using

green fuels can improve the profitability of ports.

Green fuels reduce fuel costs, save taxes and fees, help

reduce emissions and improve air quality. This could

lead to increased port profits and improved local

environmental conditions. Therefore, ports looking to

increase profitability and reduce environmental

impact should strongly consider using green fuels.

Economic models allow analysis of the potential

benefits of using green fuels on port profitability by

taking into account various economic and

environmental variables. By assessing the overall cost

savings from using green fuels and the environmental

benefits associated with their use, economic models

can be used to assess the potential economic benefits

and green benefits of investing in port green fuel

infrastructure. Evaluate potential economic benefits of

fuels. Fuel incentives for fuel consumption.

An economic multiplier model (EMM) is a tool

used by economists to measure the potential economic

impact of a particular economic activity. This he

consists of two components.( Wang, X., Li, Y., He, H.,

& Hu, X. (2015). direct and indirect effects. The EMM

formula is used to calculate the total economic effect.

This paper described how EMMs can be used to

measure the potential economic impact of green fuel

use on port profitability. I illustrated my points with

numerical examples and the data I collected. An

economic multiplier model (EMM) is a tool used to

measure the potential economic impact of a particular

policy or activity. Specifically, EMM is used to

measure the economic impact of green fuel

deployment on port profitability. The model consists

of 5 components.

Energy cost, indirect cost, direct cost, total power,

total power multiplier. This paper described each

component of the EMM in detail and provided

examples of how the model can be used to measure

the potential economic impact of green fuel use on

port profitability.

ACKNOWLEDGEMENTS

This research forms part of a focus on applying the idea of

"green ports" in the Kingdom of Saudi Arabia and

discussing their function in preserving the marine

environment (IFPIP: 766-980-1443) Funded by the Ministry

of education at Saudi Arabia and DSR at King Abdul-Aziz

University.

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