IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i3p607-d1327401.html
   My bibliography  Save this article

An Evolutionary Game Study on Green Technology Innovation of Coal Power Firms under the Dual-Regulatory System

Author

Listed:
  • Kai Ou

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
    CCTEG Chongqing Engineering (Group) Co., Ltd., Chongqing 400030, China)

  • Yu Shi

    (School of Economics and Management, Beijing University of Technology, Beijing 100124, China)

  • Wenwen Zhou

    (School of Economics and Management, Beijing University of Technology, Beijing 100124, China)

Abstract

The transformation of Chinese coal power firms is crucial for achieving carbon emission reduction (CER) goals, and promoting green technology innovation (GTI) is the key for the achievement. To examine the interactive mechanism of central and local government regulatory behavior and coal power firms’ GTI behavior under China’s dual-regulatory system, this paper introduces environmental impact coefficients and develops a tripartite evolutionary game model (EGM) from the perspective of CER. The influencing factors and interactive relationships among them are analyzed. Additionally, through numerical simulation, the impacts of changes in central and local government S&P (subsidies and penalties) on the evolution of the system are also obtained. The findings indicate the following: (1) Enhancing the initial willingness can accelerate the system’s attainment of an optimal state. The local government exhibits a slower pace of evolution. Coal power firms are more sensitive to changes in the initial willingness of the central government. (2) The local government is more sensitive to changes in the central government’s S&P intensity rather than changes in the central government’s initial willingness. Low levels of central government S&P and high penalties are ineffective, while high subsidies can lead to a sudden decrease in the local government’s willingness. (3) Local government penalties have a positive correlation with their effectiveness in promoting GTI, whereas high subsidies are ineffective. (4) The separate implementation of subsidies or penalties by either the central or the local government is detrimental to achieving the optimal state. Such an approach renders the fluctuant or negative behavior of the local government and coal power firms.

Suggested Citation

  • Kai Ou & Yu Shi & Wenwen Zhou, 2024. "An Evolutionary Game Study on Green Technology Innovation of Coal Power Firms under the Dual-Regulatory System," Energies, MDPI, vol. 17(3), pages 1, January.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:3:p:607-:d:1327401
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/3/607/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/3/607/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Juan-Pablo Montero, 2011. "End of the line: A Note on Environmental Policy and Innovation when Governments cannot Commit," Documentos de Trabajo 394, Instituto de Economia. Pontificia Universidad Católica de Chile..
    2. Feng Liu & Yihang Wei & Yu Du & Tao Lv, 2022. "Mechanism and Influencing Factors of Low-Carbon Coal Power Transition under China’s Carbon Trading Scheme: An Evolutionary Game Analysis," IJERPH, MDPI, vol. 20(1), pages 1-15, December.
    3. Jeon, Eui-Chan & Myeong, Soojeong & Sa, Jae-Whan & Kim, Jinsu & Jeong, Jae-Hak, 2010. "Greenhouse gas emission factor development for coal-fired power plants in Korea," Applied Energy, Elsevier, vol. 87(1), pages 205-210, January.
    4. van der Gaast, Wytze & Begg, Katherine & Flamos, Alexandros, 2009. "Promoting sustainable energy technology transfers to developing countries through the CDM," Applied Energy, Elsevier, vol. 86(2), pages 230-236, February.
    5. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    6. Caiming Wang & Jian Li, 2020. "The Evaluation and Promotion Path of Green Innovation Performance in Chinese Pollution-Intensive Industry," Sustainability, MDPI, vol. 12(10), pages 1-22, May.
    7. Qiao, Lu & Fei, Junjun, 2022. "Government subsidies, enterprise operating efficiency, and “stiff but deathless” zombie firms," Economic Modelling, Elsevier, vol. 107(C).
    8. N. Arfaoui, 2018. "Eco-innovation and regulatory push/pull effect in the case of REACH regulation: empirical evidence based on survey data," Applied Economics, Taylor & Francis Journals, vol. 50(14), pages 1536-1554, March.
    9. Tang, Bao-Jun & Li, Ru & Li, Xiao-Yi & Chen, Hao, 2017. "An optimal production planning model of coal-fired power industry in China: Considering the process of closing down inefficient units and developing CCS technologies," Applied Energy, Elsevier, vol. 206(C), pages 519-530.
    10. Fredriksson, Per G. & Wollscheid, Jim R., 2014. "Environmental decentralization and political centralization," Ecological Economics, Elsevier, vol. 107(C), pages 402-410.
    11. Viscusi, W Kip, 1983. "Frameworks for Analyzing the Effects of Risk and Environmental Regulations on Productivity," American Economic Review, American Economic Association, vol. 73(4), pages 793-801, September.
    12. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    13. Carmen Arguedas, 2008. "To Comply or Not To Comply? Pollution Standard Setting Under Costly Monitoring and Sanctioning," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 155-168, October.
    14. Michael Jakob & Jan Christoph Steckel & Frank Jotzo & Benjamin K. Sovacool & Laura Cornelsen & Rohit Chandra & Ottmar Edenhofer & Chris Holden & Andreas Löschel & Ted Nace & Nick Robins & Jens Suedeku, 2020. "The future of coal in a carbon-constrained climate," Nature Climate Change, Nature, vol. 10(8), pages 704-707, August.
    15. Zhao, Rui & Zhou, Xiao & Han, Jiaojie & Liu, Chengliang, 2016. "For the sustainable performance of the carbon reduction labeling policies under an evolutionary game simulation," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 262-274.
    16. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    Full references (including those not matched with items on IDEAS)

    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. Haiying Shao & Bowen Li & Yanjun Jiang, 2023. "Effect and Mechanism of Environmental Decentralization on Pollution Emission from Pig Farming—Evidence from China," Sustainability, MDPI, vol. 15(10), pages 1-15, May.
    2. Jiung Lee & Hakjin Chung & Na-Eun Cho, 2023. "The Effects of Operational Efficiency and Environmental Risk on the Adoption of Environmental Management Practices," Sustainability, MDPI, vol. 15(22), pages 1-12, November.
    3. Wenjing Ma & Mingyue Wang, 2023. "Discussion on the Relationship between Environmental Regulation and Green Technology Innovation from the Perspective of Innovation External Cooperation: Evidence from Chinese Private Enterprises," Sustainability, MDPI, vol. 15(23), pages 1-28, November.
    4. Kassouri, Yacouba, 2022. "Fiscal decentralization and public budgets for energy RD&D: A race to the bottom?," Energy Policy, Elsevier, vol. 161(C).
    5. Haiqing Hu & Di Chen & Chun‐Ping Chang & Yin Chu, 2021. "The Political Economy Of Environmental Consequences: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 250-306, February.
    6. Tinghui Li & Jiehua Ma & Bin Mo, 2021. "Does Environmental Policy Affect Green Total Factor Productivity? Quasi-Natural Experiment Based on China’s Air Pollution Control and Prevention Action Plan," IJERPH, MDPI, vol. 18(15), pages 1-23, August.
    7. Feng, Suling & Sui, Bo & Liu, Huimin & Li, Guoxiang, 2020. "Environmental decentralization and innovation in China," Economic Modelling, Elsevier, vol. 93(C), pages 660-674.
    8. Ren, Qiuzhen & Albrecht, Johan, 2023. "Toward circular economy: The impact of policy instruments on circular economy innovation for European small medium enterprises," Ecological Economics, Elsevier, vol. 207(C).
    9. Feng, Suling & Zhang, Rong & Li, Guoxiang, 2022. "Environmental decentralization, digital finance and green technology innovation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 70-83.
    10. Runsen Yuan & Chunling Li & Nian Li & Muhammad Asif Khan & Xiaoran Sun & Nosherwan Khaliq, 2021. "Can Mixed-Ownership Reform Drive the Green Transformation of SOEs?," Energies, MDPI, vol. 14(10), pages 1-25, May.
    11. Shuping Cheng & Lingjie Meng & Weizhong Wang, 2022. "The Impact of Environmental Regulation on Green Energy Technology Innovation—Evidence from China," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    12. Antonella Biscione & Raul Caruso & Annunziata de Felice, 2021. "Environmental innovation in European transition countries," Applied Economics, Taylor & Francis Journals, vol. 53(5), pages 521-535, January.
    13. Zhuo, Chengfeng & Xie, Yuping & Mao, Yanhua & Chen, Pengqin & Li, Yiqiao, 2022. "Can cross-regional environmental protection promote urban green development: Zero-sum game or win-win choice?," Energy Economics, Elsevier, vol. 106(C).
    14. Zhang, Dongyang & Wang, Jinli & Wang, Yizhi, 2023. "Greening through centralization of environmental monitoring?," Energy Economics, Elsevier, vol. 123(C).
    15. Chunrong Yan & Danyang Di & Guoxiang Li & Jianmei Wang, 2022. "Environmental regulation and the supply efficiency of environmental public services: Evidence from environmental decentralization of 289 cities in China," Growth and Change, Wiley Blackwell, vol. 53(2), pages 515-535, June.
    16. Vitaliy Roud & Thomas Wolfgang Thurner, 2018. "The Influence of State‐Ownership on Eco‐Innovations in Russian Manufacturing Firms," Journal of Industrial Ecology, Yale University, vol. 22(5), pages 1213-1227, October.
    17. Febi Jensen & Hans Lööf & Andreas Stephan, 2020. "New ventures in Cleantech: Opportunities, capabilities and innovation outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 902-917, March.
    18. Christoph P. Kiefer & Pablo Del Río González & Javier Carrillo‐Hermosilla, 2019. "Drivers and barriers of eco‐innovation types for sustainable transitions: A quantitative perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 155-172, January.
    19. Marius Dalian Doran & Maria Magdalena Poenaru & Alexandra Lucia Zaharia & Sorana Vătavu & Oana Ramona Lobonț, 2022. "Fiscal Policy, Growth, Financial Development and Renewable Energy in Romania: An Autoregressive Distributed Lag Model with Evidence for Growth Hypothesis," Energies, MDPI, vol. 16(1), pages 1-18, December.
    20. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).

    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:gam:jeners:v:17:y:2024:i:3:p:607-:d:1327401. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.