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A Duopoly Manufacturers’ Game Model Considering Green Technology Investment under a Cap-and-Trade System

Author

Listed:
  • Yi Zheng

    (Department of Industrial Engineering, School of Management, Xihua University, Chengdu 610039, China)

  • Gaoxun Zhang

    (School of Science, Southwest University of Science and Technology, Mianyang 621010, China)

  • Weiwei Zhang

    (School of Management, Xihua University, Chengdu 610039, China)

Abstract

This research studied the duopoly manufacturers’ decision-making considering green technology investment and under a cap-and-trade system. It was assumed there were two manufacturers producing products which were substitutable for one another. On the basis of this assumption, the optimal production capacity, price, and green technology investment of the duopoly manufacturers under a cap-and-trade system were obtained. The increase or decrease of the optimal production quantity of the duopoly manufacturers under a cap-and-trade system was decided by their green technology level. The increase of the optimal price as well as the increase or decrease of the maximum expected profits were decided by the initial carbon emission quota granted by the government. Our research indicates that the carbon emission of unit product is inversely proportional to the market share of an enterprise and becomes an important index to measure the core competitiveness of an enterprise.

Suggested Citation

  • Yi Zheng & Gaoxun Zhang & Weiwei Zhang, 2018. "A Duopoly Manufacturers’ Game Model Considering Green Technology Investment under a Cap-and-Trade System," Sustainability, MDPI, vol. 10(3), pages 1-11, March.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:3:p:705-:d:134802
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    References listed on IDEAS

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    Cited by:

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    2. Li Liu & Zhe Wang & Zhao Song & Zaisheng Zhang, 2023. "Evolutionary game analysis on behavioral strategies of four participants in green technology innovation system," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 960-977, March.
    3. Ziyue Wang & Juan Zhang & Huiju Zhao, 2020. "The Selection of Green Technology Innovations under Dual-Credit Policy," Sustainability, MDPI, vol. 12(16), pages 1-22, August.
    4. Zongxian Wang & Xiao Li & Weihua Liang & Junhai Ma, 2023. "Does a New Electric Vehicle Manufacturer Have the Incentive for Battery Life Investment? A Study Based on the Game Framework," Mathematics, MDPI, vol. 11(16), pages 1-20, August.

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