IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v117y2022ics0166497221000195.html
   My bibliography  Save this article

Enterprises’ decisions on adopting low-carbon technology by considering consumer perception disparity

Author

Listed:
  • Zhang, Wenjie
  • He, Lingling
  • Yuan, Hongping

Abstract

In recent years, developing low-carbon technology has been a critical strategy for enterprises to respond to global warming challenges. Although consumer perception is influential in determining technology adoption, there is a lack of studies looking into the impact of consumer perceptions on enterprises' low-carbon technology adoption behaviors. This paper thus aims to investigate enterprises' decisions on technology adoption by considering the consumer perception disparity. Findings reveal that enterprises' optimal decisions would vary with the consumer perception disparity. When the consumer perception disparity is moderate, the enterprise would not choose to adopt low-carbon technology only. When the consumer perception disparity is either small or large, win-win situations could be achieved to maximize both enterprise profits and the social welfare. However, excessively high environmental costs would compress the win-win areas and severely reduce the total social welfare. The findings also reveal that government subsidies would be helpful in driving enterprises' low-carbon technology adoption behaviors; however, the study identifies three cases when government subsidies are ineffective. Major measures, including developing a flexible government subsidy mechanism by considering consumers’ low-carbon preferences, keeping a reasonable environmental cost, can be taken to effectively promote low-carbon technology adoption. This study provides a new perspective for enterprises to make decisions on low-carbon technology adoption, and provides theoretical evidence for the government to promote the effectiveness of subsidy policies.

Suggested Citation

  • Zhang, Wenjie & He, Lingling & Yuan, Hongping, 2022. "Enterprises’ decisions on adopting low-carbon technology by considering consumer perception disparity," Technovation, Elsevier, vol. 117(C).
    • Handle: RePEc:eee:techno:v:117:y:2022:i:c:s0166497221000195
    DOI: 10.1016/j.technovation.2021.102238
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497221000195
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.technovation.2021.102238?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tan, R.R. & Aviso, K.B. & Ng, D.K.S., 2019. "Optimization models for financing innovations in green energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    2. David Popp, 2011. "International Technology Transfer, Climate Change, and the Clean Development Mechanism," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 131-152, Winter.
    3. Li, Wei & Gao, Shubin, 2018. "Prospective on energy related carbon emissions peak integrating optimized intelligent algorithm with dry process technique application for China's cement industry," Energy, Elsevier, vol. 165(PB), pages 33-54.
    4. Lu, Zhijian & Shao, Shuai, 2016. "Impacts of government subsidies on pricing and performance level choice in Energy Performance Contracting: A two-step optimal decision model," Applied Energy, Elsevier, vol. 184(C), pages 1176-1183.
    5. David Popp, 2019. "Environmental Policy and Innovation: A Decade of Research," NBER Working Papers 25631, National Bureau of Economic Research, Inc.
    6. Kennedy, Matthew & Basu, Biswajit, 2013. "Overcoming barriers to low carbon technology transfer and deployment: An exploration of the impact of projects in developing and emerging economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 685-693.
    7. Gallagher, Kelly Sims & Muehlegger, Erich, 2011. "Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 1-15, January.
    8. Chen, Yuche & Zhang, Yunteng & Fan, Yueyue & Hu, Kejia & Zhao, Jianyou, 2017. "A dynamic programming approach for modeling low-carbon fuel technology adoption considering learning-by-doing effect," Applied Energy, Elsevier, vol. 185(P1), pages 825-835.
    9. Raphael Calel & Antoine Dechezleprêtre, 2016. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 173-191, March.
    10. Stucki, Tobias, 2019. "Which firms benefit from investments in green energy technologies? – The effect of energy costs," Research Policy, Elsevier, vol. 48(3), pages 546-555.
    11. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    12. Wagner, Katherine, 2016. "Environmental preferences and consumer behavior," Economics Letters, Elsevier, vol. 149(C), pages 1-4.
    13. Popp, David, 2019. "Environmental Policy and Innovation: A Decade of Research," International Review of Environmental and Resource Economics, now publishers, vol. 13(3-4), pages 265-337, September.
    14. Stucki, Tobias & Woerter, Martin & Arvanitis, Spyros & Peneder, Michael & Rammer, Christian, 2018. "How different policy instruments affect green product innovation: A differentiated perspective," Energy Policy, Elsevier, vol. 114(C), pages 245-261.
    15. Liu, Xiaoyu & Duan, Zhiyuan & Shan, Yuli & Duan, Haiyan & Wang, Shuo & Song, Junnian & Wang, Xian'en, 2019. "Low-carbon developments in Northeast China: Evidence from cities," Applied Energy, Elsevier, vol. 236(C), pages 1019-1033.
    16. Romm, Joseph, 2006. "The car and fuel of the future," Energy Policy, Elsevier, vol. 34(17), pages 2609-2614, November.
    17. Zhou, Wenhui & Huang, Weixiang, 2016. "Contract designs for energy-saving product development in a monopoly," European Journal of Operational Research, Elsevier, vol. 250(3), pages 902-913.
    18. Du, Kerui & Li, Jianglong, 2019. "Towards a green world: How do green technology innovations affect total-factor carbon productivity," Energy Policy, Elsevier, vol. 131(C), pages 240-250.
    19. Gil-Moltó, Maria José & Varvarigos, Dimitrios, 2013. "Emission taxes and the adoption of cleaner technologies: The case of environmentally conscious consumers," Resource and Energy Economics, Elsevier, vol. 35(4), pages 486-504.
    20. Tang, Christopher S. & Zhou, Sean, 2012. "Research advances in environmentally and socially sustainable operations," European Journal of Operational Research, Elsevier, vol. 223(3), pages 585-594.
    21. Du, Kerui & Li, Pengzhen & Yan, Zheming, 2019. "Do green technology innovations contribute to carbon dioxide emission reduction? Empirical evidence from patent data," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 297-303.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Changhua & Luo, Yuqing & Zou, Hong & Huang, Junbing, 2023. "Understanding the driving factors and finding the pathway to mitigating carbon emissions in China's Yangtze River Delta region," Energy, Elsevier, vol. 278(PB).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jingbo Cui & Zhenxuan Wang & Haishan Yu, 2022. "Can International Climate Cooperation Induce Knowledge Spillover to Developing Countries? Evidence from CDM," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 923-951, August.
    2. Michael Peneder & Spyros Arvanitis & Christian Rammer & Tobias Stucki & Martin Wörter, 2022. "Policy instruments and self-reported impacts of the adoption of energy saving technologies in the DACH region," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 369-404, May.
    3. Rik L. Rozendaal & Herman R. J. Vollebergh, 2021. "Policy-Induced Innovation in Clean Technologies: Evidence from the Car Market," CESifo Working Paper Series 9422, CESifo.
    4. Stern, Nicholas & Sivropoulos-Valero, Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," LSE Research Online Documents on Economics 114385, London School of Economics and Political Science, LSE Library.
    5. Nicholas Stern & Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," CEP Discussion Papers dp1773, Centre for Economic Performance, LSE.
    6. Stern, Nicholas & Valero, Anna, 2021. "Innovation, growth and the transition to net-zero emissions," Research Policy, Elsevier, vol. 50(9).
    7. Massimiliano Mazzanti & Antonio Musolesi, 2020. "Modeling Green Knowledge Production and Environmental Policies with Semiparametric Panel Data Regression models," SEEDS Working Papers 1420, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2020.
    8. Filippo Maria D’Arcangelo & Ilai Levin & Alessia Pagani & Mauro Pisu & Åsa Johansson, 2022. "A framework to decarbonise the economy," OECD Economic Policy Papers 31, OECD Publishing.
    9. Teixidó, Jordi & Verde, Stefano F. & Nicolli, Francesco, 2019. "The impact of the EU Emissions Trading System on low-carbon technological change: The empirical evidence," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    10. Brehm, Johannes & aus dem Moore, Nils & Gruhl, Henri, 2022. "Driving Innovation? – Carbon Tax Effects in the Swedish Transport Sector," VfS Annual Conference 2022 (Basel): Big Data in Economics 264085, Verein für Socialpolitik / German Economic Association.
    11. Cui, Yi & Du, Xiaodong & Ma, Jiujie, 2020. "Agricultural Water right reforms and Irrigation Water Demand: A Quasi-Natural Experiment in China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304364, Agricultural and Applied Economics Association.
    12. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2023. "Green technologies, interdependencies, and policy," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    13. Jeroen den Bergh & Ivan Savin, 2021. "Impact of Carbon Pricing on Low-Carbon Innovation and Deep Decarbonisation: Controversies and Path Forward," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(4), pages 705-715, December.
    14. Hille, Erik & Oelker, Thomas J., 2023. "International expansion of renewable energy capacities: The role of innovation and choice of policy instruments," Ecological Economics, Elsevier, vol. 204(PA).
    15. Nicholas Stern & Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," POID Working Papers 008, Centre for Economic Performance, LSE.
    16. Zhuanlan Sun & Demi Zhu, 2023. "Investigating environmental regulation effects on technological innovation: A meta-regression analysis," Energy & Environment, , vol. 34(3), pages 463-492, May.
    17. Massimiliano Mazzanti & Antonio Musolesi, 2020. "A Semiparametric Analysis of Green Inventions and Environmental Policies," SEEDS Working Papers 0920, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2020.
    18. Nicolo Barbieri & Alberto Marzucchi & Ugo Rizzo, 2021. "Green technologies, complementarities, and policy," SPRU Working Paper Series 2021-08, SPRU - Science Policy Research Unit, University of Sussex Business School.
    19. Ribeiro, Beatriz Couto & Ferrero, Luciane Graziele Pereira & Bin, Adriana & Blind, Knut, 2023. "Effects of innovation stimuli regulation in the electricity sector: A quantitative study on European countries," Energy Economics, Elsevier, vol. 118(C).
    20. Tian, Yanping & Song, Wenjing & Liu, Min, 2021. "Assessment of how environmental policy affects urban innovation: Evidence from China’s low-carbon pilot cities program," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 41-56.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:techno:v:117:y:2022:i:c:s0166497221000195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/01664972 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.