IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0324669.html

Research on emission reduction investment strategies for low carbon technology enterprises

Author

Listed:
  • Jing Li
  • Tianchen Yang
  • Lihua Shi

Abstract

This study investigates optimal capital allocation strategies for corporate decarbonization initiatives under technological transition constraints. A decision analysis framework grounded in real options theory is developed, incorporating fuzzy-set parameters to address implementation uncertainties in emission mitigation systems. Analytical results demonstrate inverse correlations between critical intervention factors (technological decarbonization efficiency, environmental taxation levels, eco-product market premiums, and fiscal incentive mechanisms) and capital deployment thresholds. Improved technical specifications, reinforced regulatory constraints, positive consumer responses, and targeted subsidy mechanisms synergistically facilitate sustainable infrastructure investments. Comparative evaluations confirm the proposed fuzzy option model’s superiority over conventional NPV methods in valuing managerial flexibility and mitigating valuation biases. Sequential option analysis reveals that modular implementation approaches can generate incremental value through adaptive capacity in operational execution. Empirical validation through ‘’industrial case studies illustrate the framework’s practical efficacy in assessing sustainable technology portfolios, offering actionable insights for strategic planning in carbon-intensive industries. This research contributes methodological advancements for timing optimization and risk assessment in environmental technology adoption scenarios.

Suggested Citation

  • Jing Li & Tianchen Yang & Lihua Shi, 2025. "Research on emission reduction investment strategies for low carbon technology enterprises," PLOS ONE, Public Library of Science, vol. 20(10), pages 1-19, October.
    • Handle: RePEc:plo:pone00:0324669
    DOI: 10.1371/journal.pone.0324669
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0324669
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0324669&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0324669?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
    ---><---

    References listed on IDEAS

    as
    1. Siting Hong & Ting Fu & Ming Dai, 2025. "Machine Learning-Based Carbon Emission Predictions and Customized Reduction Strategies for 30 Chinese Provinces," Sustainability, MDPI, vol. 17(5), pages 1-29, February.
    2. Belaïd, Fateh & Al-Sarihi, Aisha & Al-Mestneer, Raed, 2023. "Balancing climate mitigation and energy security goals amid converging global energy crises: The role of green investments," Renewable Energy, Elsevier, vol. 205(C), pages 534-542.
    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. Attila Banyai & Tibor Tatay & Gergo Thalmeiner & Laszlo Pataki, 2025. "Evaluating the Risk-Return Profile of a Portfolio of ESG and Traditional Assets Using a Hybrid Optimisation Model," Virtual Economics, The London Academy of Science and Business, vol. 8(1), pages 16-39, March.
    2. Li, Pin & He, Qi & Zhang, Jinsuo & Xia, Qiyuan, 2024. "Analyzing the impact of energy synergy and renewable energy generation on energy security: Empirical evidence from China's Yangtze River Delta region," Energy, Elsevier, vol. 302(C).
    3. Nicholas Bamegne Nambie & Philomena Dadzie & Dorcas Oye Haywood-Dadzie, 2023. "Measuring the Effect of Income Inequality, Financial Inclusion, Investment, and Unemployment, on Economic Growth in Africa: A Moderating Role of Digital Financial Technology," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 111-124, July.
    4. Naeem, Muhammad Abubakr & Arfaoui, Nadia, 2023. "Exploring downside risk dependence across energy markets: Electricity, conventional energy, carbon, and clean energy during episodes of market crises," Energy Economics, Elsevier, vol. 127(PB).
    5. Feng, Jiayu & Gao, Jintong & Hu, Bin & Wang, Ruzhu & Xu, Zhenyuan, 2024. "A mass-coupled hybrid absorption-compression heat pump with output temperature of 200 °C," Energy, Elsevier, vol. 312(C).
    6. Wen, Jun & Zhang, Sen & Chang, Chun-Ping & Anugrah, Donni Fajar & Affandi, Yoga, 2023. "Does climate vulnerability promote green investment under energy supply restriction?," Energy Economics, Elsevier, vol. 124(C).
    7. Gökçe, Osman Zeki & Hatipoglu, Emre & Belaïd, Fateh, 2024. "Navigating energy diplomacy in times of recovery and conflict: A study of cross-border energy trade dynamics," Resources Policy, Elsevier, vol. 90(C).
    8. Goutte, Stéphane & Klotzner, Klemens & Le, Hoang-Viet & von Mettenheim, Hans-Jörg, 2024. "Forecasting photovoltaic production with neural networks and weather features," Energy Economics, Elsevier, vol. 139(C).
    9. Lee, Chi-Chuan & Fang, Yuzhu, 2025. "Climate finance for energy security: An empirical analysis from a global perspective," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 963-978.
    10. Shao, Hanhua & Wang, Yaning & Lee, Chien-Chiang & Wen, Huwei, 2024. "How does political stability affect renewable energy finance? International evidence," Energy, Elsevier, vol. 313(C).
    11. Hu, Getao & Yang, Jun & Li, Jun & Cheng, Xi & Feng, Chao, 2024. "National climate legislation and policymaking and energy security: International evidence," Applied Energy, Elsevier, vol. 375(C).
    12. Hanif, Waqas & El Khoury, Rim & Arfaoui, Nadia & Hammoudeh, Shawkat, 2025. "Are interconnectedness and spillover alike across green sectors during the COVID-19 and the Russia–Ukraine conflict?," Energy Economics, Elsevier, vol. 144(C).
    13. Zhao, Congyu & Dong, Kangyin & Nepal, Rabindra, 2026. "Can climate finance effectively address the welfare losses arising from energy poverty?," Energy Policy, Elsevier, vol. 208(C).
    14. Wuxia Xue, 2024. "RETRACTED ARTICLE: The influence of environmental and social criteria in green finance decision-making: insights and trends," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-21, June.
    15. Saidi, Hichem & Ozturk, Ilhan & Hakimi, Abdelaziz & Ullah, Sana, 2026. "Central bank independence–green investment nexus: Is energy inflation a barrier or stimulator?," Research in International Business and Finance, Elsevier, vol. 81(C).
    16. Fethi Amri, 2026. "Technology innovation and climate change mitigation: effects and transmission channels," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 28(1), pages 473-487, January.
    17. Michas, Serafeim & Flamos, Alexandros, 2024. "Least-cost or sustainable? Exploring power sector transition pathways," Energy, Elsevier, vol. 296(C).
    18. Sathish Kumar Murugan & Prity Kumari & Teena Lakshmi Baskaran & Levente Dimen & Alina Cristina Nuta, 2025. "Comparative Economic Impact of Green Energy Investments: Evidence from India, USA, Germany, and Denmark," Energies, MDPI, vol. 18(14), pages 1-13, July.
    19. Fikru, Mahelet G. & Kilinc-Ata, Nurcan & Belaïd, Fateh, 2024. "Climate policy stringency and trade in energy transition minerals: An analysis of response patterns," Resources Policy, Elsevier, vol. 96(C).
    20. Krzysztof Zagrajek & Mariusz Kłos & Desire D. Rasolomampionona & Mirosław Lewandowski & Karol Pawlak & Łukasz Baran & Tomasz Barcz & Przemysław Kołaczyński & Wojciech Suchecki, 2023. "Investing in Distributed Generation Technologies at Polish University Campuses during the Energy Transition Era," Energies, MDPI, vol. 16(12), pages 1-24, June.

    More about this item

    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:plo:pone00:0324669. 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: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    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.