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Technology R&D and sharing in carbon emission reduction in a duopoly

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  • Chen, Junlong
  • Sun, Chaoqun
  • Shi, Jiayan
  • Liu, Jiali

Abstract

This study constructs a duopoly model considering technology R&D and technology sharing in carbon emission reduction, analyzes the market equilibrium results and the impacts of product differentiation, R&D costs and sharing charges in four cases, and analyzes firms' emission reduction technologies R&D decisions and technology sharing decisions by comparing. The results show that, in most cases, an increase in product differentiation can increase the two firms' profits. However, under price competition, the increase in product differentiation reduces Firm 2's profit; one firm's technology R&D decision is affected by the other, and it is also affected by R&D marginal cost and R&D fixed costs; sharing charges affect the achievement of technology-sharing agreements. When sharing charges are within a certain range, both firms achieve win-win results. Sharing emission reduction technology can improve social welfare and reduce environmental damage, which depends on sharing charges.

Suggested Citation

  • Chen, Junlong & Sun, Chaoqun & Shi, Jiayan & Liu, Jiali, 2022. "Technology R&D and sharing in carbon emission reduction in a duopoly," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:tefoso:v:183:y:2022:i:c:s0040162522004577
    DOI: 10.1016/j.techfore.2022.121936
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