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Good wine needs no bush? Game analysis of the production behavior of carbon-labeled certified products

Author

Listed:
  • Yin, Qiaorong
  • Yan, An
  • Wei, Chenyi
  • Dong, Rui

Abstract

Carbon labels are important market-based instruments for conveying low-carbon information about products to consumers. However, in markets characterized by information asymmetry, consumers are also vulnerable to greenwashing claims, which raises concerns over whether greenwashing may crowd out the market benefits of carbon-labeled certified products. This study examines heterogeneous manufacturers' trade-offs between carbon labeling and greenwashing from a supply-side perspective. A duopoly Hotelling model and an evolutionary game are developed to identify the key factors and dynamic evolution of manufacturers' strategy choices. The results indicate that carbon label adoption depends on coordinated subsidies and regulations that overcome cost burdens and moderate greenwashing, shaped by manufacturer heterogeneity, market competition, and the green publicity effect. The policy focuses on coordinated subsidies, regulations, and specific industry and manufacturer interventions to address greenwashing, promote carbon labels, and ensure market stability.

Suggested Citation

  • Yin, Qiaorong & Yan, An & Wei, Chenyi & Dong, Rui, 2026. "Good wine needs no bush? Game analysis of the production behavior of carbon-labeled certified products," Energy Economics, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:eneeco:v:160:y:2026:i:c:s0140988326003051
    DOI: 10.1016/j.eneco.2026.109426
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