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

Zewei Rao (), Ping Li and Chunguang Bai
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Zewei Rao: University of Electronic Science and Technology
Ping Li: University of Electronic Science and Technology
Chunguang Bai: University of Electronic Science and Technology

Journal of the Knowledge Economy, 2024, vol. 15, issue 3, No 53, 11397-11429

Abstract: 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.

Keywords: Competing manufacturer; Carbon trading mechanism; Corporate green technology; Investment behavior; Green competition (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-023-01544-x

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