IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v15y2024i3d10.1007_s13132-023-01544-x.html
   My bibliography  Save this article

Unraveling the Impact of Carbon Markets on Corporate Green Technology Investment Behavior: an Evolutionary Game Approach from the Lens of Competitive Manufacturers

Author

Listed:
  • Zewei Rao

    (University of Electronic Science and Technology)

  • Ping Li

    (University of Electronic Science and Technology)

  • Chunguang Bai

    (University of Electronic Science and Technology)

Abstract

Amidst evolving consumer preferences for eco-friendly products, green technology investment has become a crucial strategic consideration for manufacturers. This study investigates green technology investment choices among competing manufacturers within the carbon emission trading (CET) market. Using a Nash game model, we analyze evolutionary stability strategies for green technology investment through evolutionary game theory, uniquely accounting for the impact of both green competition intensity and price competition. Our findings highlight that manufacturers should be more assertive in pursuing green technology investments amid intensified price competition. Moreover, the propensity for such investments rises with increased green competition, despite higher costs. Additionally, we explore the influence of carbon markets and consumer sensitivity, discovering that reasonable carbon quota allocation, higher carbon pricing, and greater consumer environmental awareness collectively bolster manufacturers’ inclination toward green technology investments. This inquiry underscores the nexus of knowledge innovation, environmental consciousness, and market dynamics, providing profound insights into manufacturers’ strategic trajectories in sustainable innovation.

Suggested Citation

  • Zewei Rao & Ping Li & Chunguang Bai, 2024. "Unraveling the Impact of Carbon Markets on Corporate Green Technology Investment Behavior: an Evolutionary Game Approach from the Lens of Competitive Manufacturers," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11397-11429, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01544-x
    DOI: 10.1007/s13132-023-01544-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-023-01544-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-023-01544-x?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Jin, Wei & Ding, Wen & Yang, Jun, 2022. "Impact of financial incentives on green manufacturing: Loan guarantee vs. interest subsidy," European Journal of Operational Research, Elsevier, vol. 300(3), pages 1067-1080.
    2. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    3. Zhuoqi Teng & Yugang He & Zhi Qiao, 2023. "Exploring the Synergistic Effects of Digitalization and Economic Uncertainty on Environmental Sustainability: An Investigation from China," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    4. Panagiotis Reklitis & Damianos P. Sakas & Panagiotis Trivellas & Giannis T. Tsoulfas, 2021. "Performance Implications of Aligning Supply Chain Practices with Competitive Advantage: Empirical Evidence from the Agri-Food Sector," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    5. Bikrant Kesari & Sunil Atulkar & Satyanarayan Pandey, 2021. "Consumer Purchasing Behaviour towards Eco-Environment Residential Photovoltaic Solar Lighting Systems," Global Business Review, International Management Institute, vol. 22(1), pages 236-254, February.
    6. Zhao, Lili & Wen, Fenghua & Wang, Xiong, 2020. "Interaction among China carbon emission trading markets: Nonlinear Granger causality and time-varying effect," Energy Economics, Elsevier, vol. 91(C).
    7. Hong, Zhaofu & Guo, Xiaolong, 2019. "Green product supply chain contracts considering environmental responsibilities," Omega, Elsevier, vol. 83(C), pages 155-166.
    8. Liangrong Zu, 2019. "Purpose-driven leadership for sustainable business: From the Perspective of Taoism," International Journal of Corporate Social Responsibility, Springer, vol. 4(1), pages 1-31, December.
    9. Wu, Ruirui & Qin, Zhongfeng & Liu, Bing-Yue, 2022. "A systemic analysis of dynamic frequency spillovers among carbon emissions trading (CET), fossil energy and sectoral stock markets: Evidence from China," Energy, Elsevier, vol. 254(PA).
    10. Guo, Shu & Choi, Tsan-Ming & Shen, Bin, 2020. "Green product development under competition: A study of the fashion apparel industry," European Journal of Operational Research, Elsevier, vol. 280(2), pages 523-538.
    11. Li, Zhimin & Pan, Yanchun & Yang, Wen & Ma, Jianhua & Zhou, Ming, 2021. "Effects of government subsidies on green technology investment and green marketing coordination of supply chain under the cap-and-trade mechanism," Energy Economics, Elsevier, vol. 101(C).
    12. Chunguang Bai & Joseph Sarkis, 2020. "A supply chain transparency and sustainability technology appraisal model for blockchain technology," International Journal of Production Research, Taylor & Francis Journals, vol. 58(7), pages 2142-2162, April.
    13. Chong Huang & Shaofu Du & Bill Wang & Wenzhi Tang, 2023. "Accelerate or hinder it? Manufacturer transformation under competition and carbon emission trading," International Journal of Production Research, Taylor & Francis Journals, vol. 61(18), pages 6230-6250, September.
    14. Hsu, Ching-Chi & Ngo, Quang-Thanh & Chien, FengSheng & Li, Li & Mohsin, Muhammad, 2021. "Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation," MPRA Paper 109671, University Library of Munich, Germany.
    15. Xiaoli Feng & Alireza Goli, 2023. "Enhancing Business Performance through Circular Economy: A Comprehensive Mathematical Model and Statistical Analysis," Sustainability, MDPI, vol. 15(16), pages 1-19, August.
    16. Seyyed-Mahdi Hosseini-Motlagh & Samira Ebrahimi & Abbas Jokar, 2021. "Sustainable supply chain coordination under competition and green effort scheme," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(2), pages 304-319, February.
    17. 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.
    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. Niu Yu & Mengni Xiong & Pin Zhou & Qingguo Bai, 2025. "Contract design for a retailer-dominated supply chain under asymmetric green investment cost information," Operational Research, Springer, vol. 25(1), pages 1-31, March.
    2. Ahmad Fadavi & Fariborz Jolai & Ata Allah Taleizadeh, 2022. "Green product design in a supply chain with considering marketing under competition and coordination," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 11721-11759, October.
    3. Lai, Zhixuan & Lou, Gaoxiang & Chung, Sai-Ho & Fan, Tijun & Ma, Haicheng & Yu, Mingjun, 2025. "The bright side of low-carbon technology sharing in a capital-constrained supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 193(C).
    4. Zolfagharinia, Hossein & Zangiabadi, Maryam & Hafezi, Maryam, 2023. "How much is enough? Government subsidies in supporting green product development," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1316-1333.
    5. Hsieh, Chung-Chi & Wu, Ching-Yu & Lathifah, Artya, 2025. "Cross-channel influence of blockchain technology on green supply chains under asymmetric retail platform competition," International Journal of Production Economics, Elsevier, vol. 283(C).
    6. Kelei Xue & Guohua Sun & Yuyan Wang & Shuiye Niu, 2021. "Optimal Pricing and Green Product Design Strategies in a Sustainable Supply Chain Considering Government Subsidy and Different Channel Power Structures," Sustainability, MDPI, vol. 13(22), pages 1-26, November.
    7. Cao, Yifan & Shen, Bin, 2022. "Adopting blockchain technology to block less sustainable products’ entry in global trade," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    8. Han, Xiaoya & Khouja, Moutaz & Liu, Xin, 2023. "A dynamic model considering consumer green awareness and environmental subsidy," International Journal of Production Economics, Elsevier, vol. 260(C).
    9. Zhixuan Lai & Gaoxiang Lou & Linsen Yin & Haicheng Ma & Xuechen Tu, 2025. "Supply chain green strategy considering manufacturers’ financial constraints: how to manage the risk of green supply chain financing," Annals of Operations Research, Springer, vol. 348(2), pages 1037-1068, May.
    10. Avinadav, Tal & Levy, Priel, 2023. "The effect of an uncertain commission rate on the decisions of a capital-constrained developer," Operations Research Perspectives, Elsevier, vol. 11(C).
    11. Li, Jin & Hu, Zening & Shi, Victor & Wang, Qian, 2021. "Manufacturer's encroachment strategy with substitutable green products," International Journal of Production Economics, Elsevier, vol. 235(C).
    12. Reza Eslamipoor & Abbas Sepehriyar, 2024. "Promoting green supply chain under carbon tax, carbon cap and carbon trading policies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4901-4912, July.
    13. Wang, Feipeng & Wong, Wing-Keung & Wang, Zheng & Albasher, Gadah & Alsultan, Nouf & Fatemah, Ambreen, 2023. "Emerging pathways to sustainable economic development: An interdisciplinary exploration of resource efficiency, technological innovation, and ecosystem resilience in resource-rich regions," Resources Policy, Elsevier, vol. 85(PA).
    14. Yumin Fu & Jianyun Wu & Cheng Ma & Xiaoyu Fu, 2023. "Agency, Reselling, or Hybrid: Strategic Channel Selection in a Green Supply Chain," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    15. Yahya, Farzan & Lee, Chien-Chiang, 2023. "Disentangling the asymmetric effect of financialization on the green output gap," Energy Economics, Elsevier, vol. 125(C).
    16. Xia, Jing & Niu, Wenju, 2021. "Carbon-reducing contract design for a supply chain with environmental responsibility under asymmetric information," Omega, Elsevier, vol. 102(C).
    17. Ouyang, Jianjun & Fu, Jie, 2023. "Energy-saving and subsidy policy decisions for double competition manufacturers," Energy Economics, Elsevier, vol. 117(C).
    18. Subrata Panja & Shyamal Kumar Mondal, 2023. "Sustainable production inventory management through bi-level greening performance in a three-echelon supply chain," Operational Research, Springer, vol. 23(1), pages 1-55, March.
    19. Xiaojiao Qiao & Shimeng Xu & Dan Shi & Xiukun Zhao, 2023. "Data-Driven Sustainable Supply Chain Decision Making in the Presence of Low Carbon Awareness," Sustainability, MDPI, vol. 15(12), pages 1-16, June.
    20. Weihao Wang & Deqing Ma & Jinsong Hu, 2022. "Dynamic Carbon Reduction and Marketing Strategies with Consumers’ Environmental Awareness under Cap-and-Trade Regulation," Sustainability, MDPI, vol. 14(16), pages 1-31, August.

    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:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01544-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.