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Green transformation in oligopoly markets under common ownership

Kosuke Hirose and Toshihiro Matsumura

MPRA Paper from University Library of Munich, Germany

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

Keywords: green transition; green fuel; brown fuel; competition restricting effect; production substitution (search for similar items in EconPapers)
JEL-codes: L13 M14 Q57 (search for similar items in EconPapers)
Date: 2022-11-01
New Economics Papers: this item is included in nep-com, nep-ene, nep-env and nep-ind
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Journal Article: Green transformation in oligopoly markets under common ownership (2023) Downloads
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