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Optimal green technology investment and emission reduction in emissions generating companies under the support of green bond and subsidy

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  • Hussain, Jafar
  • Lee, Chien-Chiang
  • Chen, Yongxiu

Abstract

Carbon emission is one of the major problems in emissions generating companies (EGCs) due resource consumption, spurring a need for carbon emission reduction, but most EGCs cannot reduce it due to a lack of green technology implementation. This research proposes a monopoly market under the consideration of EGCs and develops a simulation-based optimization model to measure the optimal behavior of green technology investment to reduce carbon emission. To see its implementation, we investigate the intervention of the government, which provides an optimal subsidy on green technology investment. Our study helps the government to find an optimal green technology investment and subsidy on green technology investment. Additionally, this optimal subsidy allows decision-makers to improve environment cleanliness by taking incentives in the form of green subsidy. They can also fulfill their primary objective of profit maximization by finding an optimum product price.

Suggested Citation

  • Hussain, Jafar & Lee, Chien-Chiang & Chen, Yongxiu, 2022. "Optimal green technology investment and emission reduction in emissions generating companies under the support of green bond and subsidy," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:tefoso:v:183:y:2022:i:c:s0040162522004735
    DOI: 10.1016/j.techfore.2022.121952
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