Are subsidies regulated in cantons & municipalities?

While certain aspects at least of the granting of subsidies at federal level are regulated, in the cantons and municipalities it’s effectively no holds barred. There are still various subsidy regimes at cantonal level that distort competition to such a degree that they’ve long since been abolished in neighboring countries.

How do government subsidies affect shore power?

Specifically, excessive government subsidies can cause a huge financial expenditure, while inadequate government subsidies, in contrast, may not be able to attract port enterprises and shipping companies to invest in shore power.

How does a government subsidy affect shipping?

The key thresholds with or without government subsidies have the following relationship: T 1 ⩽ T 1s ⩽ T 2 ⩽ T 2s, and T 2 − T 1 ⩽ T 2s − T 1s. This proposition highlights that a government subsidy makes it more likely that the two shipping companies will reach an equilibrium in which both use shore power.

Would a government subsidy increase a rival shipping company?

More importantly, if a rival shipping company does not use shore power, then a government subsidy increase would more significantly increase the profit of a shipping company that uses shore power (i.e., ∂ π 1s UN ∂ δ> ∂ π 1s UU ∂ δ).

Why does a port need a government subsidy?

Due to the absence of government subsidy, the game between the government and the port does not exist in this case. Therefore, the port can independently determine the investment scale of shore power facilities and the price of shore power service to maximize its own net profit.

Are there new subsidies for companies operating internationally?

No new subsidies for companies operating internationally as compensation for the upcoming implementation of the global minimum tax of 15 percent. No subsidy-related competitive advantages for the federal government, cantons, municipalities, and public-sector undertakings when doing private-sector business (competitive neutrality).