Mean-Field Modeling of Green Technology Adoption: A Competition for Incentives

Luca Grosset () and Elena Sartori
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Luca Grosset: Department of Mathematics “Tullio Levi-Civita”, University of Padova, Via Trieste, 63, 35121 Padova, Italy
Elena Sartori: Department of Mathematics “Tullio Levi-Civita”, University of Padova, Via Trieste, 63, 35121 Padova, Italy

Mathematics, 2025, vol. 13, issue 5, 1-18

Abstract: This paper investigates the role of fiscal incentives in promoting the transition to a green economy using a dynamic mean-field game framework. By modeling firms as representative agents undergoing an environmentally sustainable transition, we analyze two distinct types of incentive structure: fixed incentives and incentives based on the average behavior of firms. The findings underscore the importance of balancing incentive structures to avoid economic inefficiencies and ensure a smooth ecological transition.

Keywords: mean-field games; continuous-time Markov chain; dynamic programming; incentives; green technology adoption (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2025
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