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Unraveling the Impact of Carbon Markets on Corporate Green Technology Investment Behavior: an Evolutionary Game Approach from the Lens of Competitive Manufacturers

Author

Listed:
  • Zewei Rao

    (University of Electronic Science and Technology)

  • Ping Li

    (University of Electronic Science and Technology)

  • Chunguang Bai

    (University of Electronic Science and Technology)

Abstract

Amidst evolving consumer preferences for eco-friendly products, green technology investment has become a crucial strategic consideration for manufacturers. This study investigates green technology investment choices among competing manufacturers within the carbon emission trading (CET) market. Using a Nash game model, we analyze evolutionary stability strategies for green technology investment through evolutionary game theory, uniquely accounting for the impact of both green competition intensity and price competition. Our findings highlight that manufacturers should be more assertive in pursuing green technology investments amid intensified price competition. Moreover, the propensity for such investments rises with increased green competition, despite higher costs. Additionally, we explore the influence of carbon markets and consumer sensitivity, discovering that reasonable carbon quota allocation, higher carbon pricing, and greater consumer environmental awareness collectively bolster manufacturers’ inclination toward green technology investments. This inquiry underscores the nexus of knowledge innovation, environmental consciousness, and market dynamics, providing profound insights into manufacturers’ strategic trajectories in sustainable innovation.

Suggested Citation

  • Zewei Rao & Ping Li & Chunguang Bai, 2024. "Unraveling the Impact of Carbon Markets on Corporate Green Technology Investment Behavior: an Evolutionary Game Approach from the Lens of Competitive Manufacturers," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11397-11429, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01544-x
    DOI: 10.1007/s13132-023-01544-x
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    References listed on IDEAS

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