Research on emission reduction investment strategies for low carbon technology enterprises

Jing Li, Tianchen Yang and Lihua Shi

PLOS ONE, 2025, vol. 20, issue 10, 1-19

Abstract: This study investigates optimal capital allocation strategies for corporate decarbonization initiatives under technological transition constraints. A decision analysis framework grounded in real options theory is developed, incorporating fuzzy-set parameters to address implementation uncertainties in emission mitigation systems. Analytical results demonstrate inverse correlations between critical intervention factors (technological decarbonization efficiency, environmental taxation levels, eco-product market premiums, and fiscal incentive mechanisms) and capital deployment thresholds. Improved technical specifications, reinforced regulatory constraints, positive consumer responses, and targeted subsidy mechanisms synergistically facilitate sustainable infrastructure investments. Comparative evaluations confirm the proposed fuzzy option model’s superiority over conventional NPV methods in valuing managerial flexibility and mitigating valuation biases. Sequential option analysis reveals that modular implementation approaches can generate incremental value through adaptive capacity in operational execution. Empirical validation through ‘’industrial case studies illustrate the framework’s practical efficacy in assessing sustainable technology portfolios, offering actionable insights for strategic planning in carbon-intensive industries. This research contributes methodological advancements for timing optimization and risk assessment in environmental technology adoption scenarios.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0324669

DOI: 10.1371/journal.pone.0324669

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