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Table 6 Parameters of variables in Eqs. (6)–(7) and (23)

From: Investment decisions under uncertainty on LNG-powered vessels for environmental compliance

  Parameters Estimates Parameters Estimates Parameters Estimates
IFO η o 0.002456 \( {\overline{P}}_o \) 5.5638 σ o 0.0377
MGO α 0.894557 β 1.1109
LNGhenry hub η ghh 0.01616 \( {\overline{P}}_{ghh} \) 1.5653 σ ghh 0.04939
LNGjapan η gjp 0.01376 \( {\overline{P}}_{gjp} \) 2.1945 σ gjp 0.05562
  1. η o is a generalized drift parameter and σ o is a generalized diffusion parameter. \( {\overline{P}}_o \) is the mean value of oil-based fuel prices. α is the parameter and β the intercept in the cointegrating vector of the cointegration relationships between IFO and MGO. η ghh is a generalized drift parameter and σ ghh is a generalized diffusion parameter. \( {\overline{P}}_{ghh} \) denotes the mean value of LNG prices at Henry Hub. η gjp is a generalized drift parameter and σ gjp is a generalized diffusion parameter. \( {\overline{P}}_{gjp} \) denotes the mean value of LNG prices at Japan and W ∆t can be simulated with a normal inverse function with \( \varepsilon \sqrt{\Delta t} \) where ε~N(0, 1)