IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i17p7542-d1467998.html
   My bibliography  Save this article

Evolutionary Game Analysis of Government Regulation on Green Innovation Behavior Decision-Making of Energy Enterprises

Author

Listed:
  • Gedi Ji

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    These authors contributed equally to this work.)

  • Qisheng Wang

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    These authors contributed equally to this work.)

  • Qing Chang

    (School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, China
    These authors contributed equally to this work.)

  • Yu Fang

    (Faculty of Management and Economics, Kunming University of Science and Technology, 727 Jingming South Road, Kunming 650500, China)

  • Jianglin Bi

    (School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China)

  • Ming Chen

    (School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China)

Abstract

Encouraging environmentally friendly innovation in energy companies is an essential way to stop global warming. Through ingenious integration of reputation and fairness preference, this research develops an evolutionary game model between the government and energy companies. This research investigates the dynamic evolution of green innovation strategy selection by energy firms operating under government supervision, using an evolutionary game model as a basis. This study examines how government regulations, including their subsidies and penalties, reputation, and fairness preference, affect the green innovation behavior of energy enterprises. The research shows that without considering the fairness preference, the subsidy and punishment of government regulation can improve the tendency of energy enterprises to choose green innovation behavior. At the same time, considering the reputation of energy enterprises to assume social responsibility can improve the tendency of energy enterprises to choose green innovation behavior. In the case of considering fairness preference, energy companies with strong fairness preference are more likely not to adopt green innovation and need more subsidies and penalties to choose green innovation; energy enterprises with weak fairness preference are more likely to adopt green innovation; green innovation will take place with fewer subsidies and penalties; reputation plays a stronger role in energy companies with weak fairness preferences. The study can give the government a theoretical foundation on which to build precise regulatory plans for various energy firms and encourage green innovation in those enterprises.

Suggested Citation

  • Gedi Ji & Qisheng Wang & Qing Chang & Yu Fang & Jianglin Bi & Ming Chen, 2024. "Evolutionary Game Analysis of Government Regulation on Green Innovation Behavior Decision-Making of Energy Enterprises," Sustainability, MDPI, vol. 16(17), pages 1-18, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7542-:d:1467998
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/17/7542/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/17/7542/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rongwu Zhang & Wenqiang Fu & Yingxu Kuang, 2022. "Can Digital Economy Promote Energy Conservation and Emission Reduction in Heavily Polluting Enterprises? Empirical Evidence from China," IJERPH, MDPI, vol. 19(16), pages 1-21, August.
    2. Shoujun Lyu & Xingchi Shen & Yujie Bi, 2020. "The Dually Negative Effect of Industrial Polluting Enterprises on China’s Air Pollution: A Provincial Panel Data Analysis Based on Environmental Regulation Theory," IJERPH, MDPI, vol. 17(21), pages 1-16, October.
    3. Tao, Zhang & Huang, Xiao Yue & Dang, Yi Jing & Qiao, Sen, 2022. "The impact of factor market distortions on profit sustainable growth of Chinese renewable energy enterprises: The moderating effect of environmental regulation," Renewable Energy, Elsevier, vol. 200(C), pages 1068-1080.
    4. Zhang, Xi & Zhu, Qingyuan & Li, Xingchen & Pan, Yinghao, 2023. "The impact of government subsidy on photovoltaic enterprises independent innovation based on the evolutionary game theory," Energy, Elsevier, vol. 285(C).
    5. Xinguang Zhang & Yong Hong Wu & Dragoș-Pãtru Covei & Xinan Hao, 2014. "Complex Boundary Value Problems of Nonlinear Differential Equations 2014," Abstract and Applied Analysis, Hindawi, vol. 2014, pages 1-4, August.
    6. Zhou, Wenwen & shi, Yu & Zhao, Tian & Cao, Ximeng & Li, Jialin, 2024. "Government regulation, horizontal coopetition, and low-carbon technology innovation: A tripartite evolutionary game analysis of government and homogeneous energy enterprises," Energy Policy, Elsevier, vol. 184(C).
    7. Yuming Zhang & Juanjuan Zhang & Zhang Cheng, 2021. "Stock Market Liberalization and Corporate Green Innovation: Evidence from China," IJERPH, MDPI, vol. 18(7), pages 1-22, March.
    8. Ran Zhang & Guoquan Kong & Huaping Sun, 2023. "Can New-Type Urbanization Promote Enterprise Green Technology Innovation?—A Study Based on Difference-in-Differences Model," Sustainability, MDPI, vol. 15(7), pages 1-20, April.
    9. Zhou, Xiaoxiao & Jia, Mengyu & Wang, Lu & Sharma, Gagan Deep & Zhao, Xin & Ma, Xiaowei, 2022. "Modelling and simulation of a four-group evolutionary game model for green innovation stakeholders: Contextual evidence in lens of sustainable development," Renewable Energy, Elsevier, vol. 197(C), pages 500-517.
    10. Weizhou Su & Gaowen Lei & Sidai Guo & Hongche Dan, 2022. "Study on the Influence Mechanism of Environmental Management System Certification on Enterprise Green Innovation," IJERPH, MDPI, vol. 19(19), pages 1-20, September.
    11. Ning, Jiajun & Xiong, Lixin, 2024. "Analysis of the dynamic evolution process of the digital transformation of renewable energy enterprises based on the cooperative and evolutionary game model," Energy, Elsevier, vol. 288(C).
    12. Deqin Lin & Yuetong Zhao, 2023. "The Impact of Environmental Regulations on Enterprises’ Green Innovation: The Mediating Effect of Managers’ Environmental Awareness," Sustainability, MDPI, vol. 15(14), pages 1-26, July.
    13. Peishu Chen & Yu He & Kai Yue & Guochang Fang, 2023. "Can Carbon Trading Promote Low-Carbon Transformation of High Energy Consumption Enterprises?—The Case of China," Energies, MDPI, vol. 16(8), pages 1-18, April.
    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. Li, Yanbin & Su, Xinzhu & Li, Yun & Zhang, Feng, 2025. "Evolutionary game analysis of microgrids’ grid connection under government reward and punishment mechanism," Energy, Elsevier, vol. 318(C).
    2. Zhang, Rongwu & Fu, Wenqiang & Lu, Tong, 2023. "Capital market opening and corporate environmental performance: Empirical evidence from China," Finance Research Letters, Elsevier, vol. 53(C).
    3. Liurong Zhao & Xiaoxi Yu & Xinyu Zhou, 2024. "Regulatory mechanism of vulnerability disclosure behavior considering security crowd-testing: An evolutionary game analysis," PLOS ONE, Public Library of Science, vol. 19(6), pages 1-31, June.
    4. Ning, Jiajun & Xiong, Lixin, 2024. "Analysis of the dynamic evolution process of the digital transformation of renewable energy enterprises based on the cooperative and evolutionary game model," Energy, Elsevier, vol. 288(C).
    5. Da Gao & Xiaotian Zhou & Jing Wan, 2024. "Unlocking sustainability potential: The impact of green finance reform on corporate ESG performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4211-4226, September.
    6. Nguyen, Justin Hung & Qiu, Buhui, 2022. "Right-to-Work laws and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 76(C).
    7. Zhang, Weiwei & Wang, Yuanrong & Chen, Ximei & Li, Yunzhuo & Dai, He, 2025. "Exploring the diffusion mechanisms of CCS-EOR technology: A quadripartite evolutionary game," Energy, Elsevier, vol. 320(C).
    8. Duan, Yu & Xi, Bin & Xu, Xin & Xuan, Siyuan, 2024. "The impact of government subsidies on green innovation performance in new energy enterprises: A digital transformation perspective," International Review of Economics & Finance, Elsevier, vol. 94(C).
    9. Wang, Xun, 2022. "Capital account liberalization, financial dependence and technological innovation: Cross-country evidence," Journal of Banking & Finance, Elsevier, vol. 145(C).
    10. Fang, Xubing & Liu, Maotao, 2024. "Regional judicial capacity and corporate total factor productivity: Evidence from the establishment of circuit courts," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 465-489.
    11. Yunxin Peng & Adel A. Zadeh & Sheila M. Puffer, 2023. "Unearthing the Construction Industry’s Awareness of and Reactions to the Global Sand Crisis," Sustainability, MDPI, vol. 15(21), pages 1-17, November.
    12. Hongbo Guo & Mengtong Lu & Lili Ding, 2022. "The Effect of Consumer Sentiment on Manufacturers’ Green Technology Innovation: A RDEU Evolutionary Game Model," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    13. Cong Zhang & Shanyue Jin, 2022. "What Drives Sustainable Development of Enterprises? Focusing on ESG Management and Green Technology Innovation," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    14. Shuangcheng Luo & Yangli Yuan, 2023. "The Path to Low Carbon: The Impact of Network Infrastructure Construction on Energy Conservation and Emission Reduction," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    15. Yunqing Zhao & Debao Dai & Wei Shao & Liang Ye, 2024. "Can the Carbon Trading Policy Enhance Resource Allocation Efficiency?—An Analysis of the Synergistic Effect of Market Mechanism and Government Intervention," Sustainability, MDPI, vol. 16(22), pages 1-24, November.
    16. Gong, Zheng, 2021. "Can Digital Finance Promote the Technological Innovation of Agricultural Enterprises?—Evidence from NEEQ Companies in China," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329419, Asian Society of Agricultural Economists (ASAE).
    17. Kuoyi Lin & Bin Li, 2024. "A Cloud- and Game Model-Based Approach to Project Evaluations of Sustainable Power Supply Investments," Sustainability, MDPI, vol. 16(10), pages 1-15, May.
    18. Sun, Yuhuan & Li, Hui & Zhu, Bingcheng, 2024. "Factor market distortion, total factor energy efficiency and energy shadow price: A case of Chinese manufacturing industry," Energy, Elsevier, vol. 307(C).
    19. Hong, Jifeng & Kazakis, Pantelis & Strieborny, Martin, 2024. "Green Bond Issuance by Firms, External Monitoring, and Probability of Default: An Empirical Research Based on Green Policies," MPRA Paper 123049, University Library of Munich, Germany.
    20. Bagh, Tanveer & Zhou, Bingjun & Alawi, Suha Mahmoud & Azam, Rauf I, 2024. "ESG resilience: Exploring the non-linear effects of ESG performance on firms sustainable growth," Research in International Business and Finance, Elsevier, vol. 70(PA).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:jsusta:v:16:y:2024:i:17:p:7542-:d:1467998. 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.