Green transformation in oligopoly markets under common ownership

Kosuke Hirose and Toshihiro Matsumura

Energy Economics, 2023, vol. 126, issue C

Abstract: This study conducts a theoretical investigation on how common ownership (or the extent of cooperation in an industry) affects firms’ incentives to adopt green sources in an oligopoly. The findings show that common ownership hinders the switch from brown to green sources in two ways. First, an increase in the degree of common ownership reduces a firm’s incentive to adopt green sources. Second, an increase in the degree of common ownership induces a production substitution from green to brown firms. Both these effects reduce the share of green sources.

Keywords: Green transition; Green source; Brown source; Competition restricting effect; Production substitution (search for similar items in EconPapers)
JEL-codes: L13 M14 Q57 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:126:y:2023:i:c:s0140988323003900

DOI: 10.1016/j.eneco.2023.106892

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