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Green transformation in oligopoly markets under common ownership

Author

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  • Hirose, Kosuke
  • Matsumura, Toshihiro

Abstract

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

Suggested Citation

  • Hirose, Kosuke & Matsumura, Toshihiro, 2023. "Green transformation in oligopoly markets under common ownership," Energy Economics, Elsevier, vol. 126(C).
    • Handle: RePEc:eee:eneeco:v:126:y:2023:i:c:s0140988323003900
    DOI: 10.1016/j.eneco.2023.106892
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    More about this item

    Keywords

    Green transition; Green source; Brown source; Competition restricting effect; Production substitution;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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