A1169
Title: Marine fuel hedging under the sulphur cap regulations
Authors: Frantisek Cech - UTIA AV CR, v.v.i. (Czech Republic) [presenting]
Abstract: It is argued that consumers and producers of marine fuels can reduce the uncertainty of their portfolios under the environmental regulations aimed at air pollution reduction. The results show that variance reduction can be up to 72\% compared to unhedged position. We also identify Gasoil futures as the universal hedging instrument to manage uncertainty.
