A duopoly game model for pricing and green technology selection under cap-and-trade scheme

Pan, Yanchun; Hussain, Jafar; Liang, Xing-ying; Ma, Jun

doi:10.1016/j.cie.2020.107030

Cited by 46 publications

(29 citation statements)

References 29 publications

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“…We use a non‐linear programming model (Pan et al, 2021) by considering the parameters, which are shown in Table 1. We develop the mathematical model following previous studies (Hussain et al, 2020; Pan et al, 2021) and modify it.…”

Section: Model and Research Analysismentioning

confidence: 99%

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A green path towards sustainable development: Optimal behavior of the duopoly game model with carbon neutrality instruments

Hussain

Lee

2022

Sustainable Development

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Carbon emission is a global issue, and China is facing many problems to resolve it, especially in emission‐generating companies (EGCs). To maintain sustainable development, it is necessary to reduce carbon emissions for the well‐being of society, and carbon neutrality can play an important role. With China targeting the goal of carbon neutrality to reduce carbon emissions, this research aims to bridge the gap in the literature by considering carbon neutrality instruments in a duopoly market. The study sets up a mathematical model of the duopoly game to achieve desired objectives and then applies a simulation‐based optimization technique to examine the mathematical model under different experiments. After manipulating various scenarios to find the optimal values of carbon neutrality instruments, the results indicate that green bond provision, emission tax, and emission quota play a vital role in carbon neutrality. Different combinations of carbon neutrality instruments reduce various levels of carbon emissions. We further show that a combination of emission tax upon EGCs plays a key role in reducing carbon emissions during the fifth scenario. In the second scenario, a combination of green bond provision and emission tax reduces carbon emissions, but is lower than the fifth scenario. This research offers a reference for policymakers to move towards carbon neutrality, and it is beneficial for the government to decide the optimal values of carbon neutrality instruments.

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Section: Model and Research Analysismentioning

confidence: 99%

“…The variables incorporated in the simulation model appear in Figure 3. The game scenarios and payoff matrix about decision variables are developed according to previous studies (Pan et al, 2021; Zhang et al, 2020).…”

Section: Model and Research Analysismentioning

confidence: 99%

A green path towards sustainable development: Optimal behavior of the duopoly game model with carbon neutrality instruments

Hussain

Lee

2022

Sustainable Development

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“…Therefore, the carbon price affects the upgrading and transformation of these industries, which in turn affects the stock returns of listed companies in these industries. The carbon price is the major factor to be considered when a pollution-generating company implements green technology in operational decisions (Pan et al 2021 ). It is also studied that carbon price could facilitate the adoption of carbon capture and storage technology and can effectively reduce coal-related greenhouse gas emissions (Jie et al 2020 ).…”

Section: Introductionmentioning

confidence: 99%

The dynamics of carbon on green energy equity investment: quantile-on-quantile and quantile coherency approaches

Meng

2021

Environ Sci Pollut Res

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We analyze the dynamic correlation between the carbon price and the stock returns of green energy companies and calculate the hedging effect of the carbon price on stock returns in green energy sectors. The results show that the coefficients of the carbon price change with time and are vulnerable to extreme events like the COVID-19. The quantile-on-quantile (QQ) model results reveal a dynamic effect from the carbon price to the stock returns of green energy sectors. The quantile coherency (QC) approach results show that investors can benefit more in the short term with high-frequency trading to hedge between carbon trading and the green energy stock market. What is more, the hedging effects are heterogenetic and investors should adjust their hedging strategies in different quantiles.

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“…Therefore, the carbon price affects the upgrading and transformation of these industries, which in turn affects the stock returns of listed companies in these industries. The carbon price is the major factor to be considered when a pollutiongenerating company implements green technology in operational decisions (Pan et al, 2021). It is also studied that carbon price could facilitate the adoption of carbon capture and storage technology and can effectively reduce coal-related greenhouse gas emissions (Jie et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

The Dynamics of Carbon on Green Energy Equity Investment: Utilizing the Quantile-on-Quantile and Quantile Coherency Approach

Meng

2021

Preprint

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we analyze the dynamic correlation between the carbon price and the stock returns of green energy companies and calculate the hedging effect of the carbon price on stock returns in green energy sectors. The results show that the coefficients of the carbon price change with time and are vulnerable to extreme events like the COVID-19. The quantile-on-quantile (QQ) model results reveal a dynamic effect from the carbon price to the stock returns of green energy sectors. The quantile coherency (QC) approach results show that investors can benefit more in the short term with high-frequency trading to hedge between carbon trading and the green energy stock market. What’s more, the hedging effects are heterogenetic and investors should adjust their hedging strategies in different quantiles.

show abstract

A duopoly game model for pricing and green technology selection under cap-and-trade scheme

Cited by 46 publications

References 29 publications

A green path towards sustainable development: Optimal behavior of the duopoly game model with carbon neutrality instruments

A green path towards sustainable development: Optimal behavior of the duopoly game model with carbon neutrality instruments

The dynamics of carbon on green energy equity investment: quantile-on-quantile and quantile coherency approaches

The Dynamics of Carbon on Green Energy Equity Investment: Utilizing the Quantile-on-Quantile and Quantile Coherency Approach

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