On the implications of cross-ownership under green transformation

Dang-Long Bui, Cheng-Hau Peng and Yan-Shu Lin

Energy Economics, 2025, vol. 148, issue C

Abstract: Traditional wisdom suggests that cross-ownership lessens competition between rival firms, leading to lower total output produced, consequently reducing consumer surplus and environmental damage. By incorporating a Cournot duopoly model, where the firms endogenously determine whether or not to transform green by following a standard from an environmental regulator, we find the reverse implications in some circumstances. Surprisingly, a rise in cross-ownership level that induces the equilibrium to shift from non-transformation to partial transformation benefits both consumers and the environment. Our analysis also shows that full transformation (partial transformation, non-transformation) occurs in equilibrium if the environmental standard is low (medium, high). Moreover, cross-ownership extension stimulates (hinders) green transformation if its degree is low (high). These results also hold under an oligopoly.

Keywords: Cross-ownership; Green transformation; Environmental standard; Consumer surplus; Environmental emissions (search for similar items in EconPapers)
JEL-codes: L41 Q51 Q56 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988325004682
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:148:y:2025:i:c:s0140988325004682

DOI: 10.1016/j.eneco.2025.108641

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().