Next Article in Journal
A Concession Period and Price Determination Model for PPP Projects: Based on Real Options and Risk Allocation
Previous Article in Journal
Linking Importance–Performance Analysis, Satisfaction, and Loyalty: A Study of Savannah, GA
Article Menu
Issue 3 (March) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(3), 705; https://doi.org/10.3390/su10030705

A Duopoly Manufacturers’ Game Model Considering Green Technology Investment under a Cap-and-Trade System

1
Department of Industrial Engineering, School of Management, Xihua University, Chengdu 610039, China
2
School of Science, Southwest University of Science and Technology, Mianyang 621010, China
3
School of Management, Xihua University, Chengdu 610039, China
*
Author to whom correspondence should be addressed.
Received: 13 January 2018 / Revised: 1 March 2018 / Accepted: 1 March 2018 / Published: 5 March 2018
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
Full-Text   |   PDF [227 KB, uploaded 5 March 2018]

Abstract

This research studied the duopoly manufacturers’ decision-making considering green technology investment and under a cap-and-trade system. It was assumed there were two manufacturers producing products which were substitutable for one another. On the basis of this assumption, the optimal production capacity, price, and green technology investment of the duopoly manufacturers under a cap-and-trade system were obtained. The increase or decrease of the optimal production quantity of the duopoly manufacturers under a cap-and-trade system was decided by their green technology level. The increase of the optimal price as well as the increase or decrease of the maximum expected profits were decided by the initial carbon emission quota granted by the government. Our research indicates that the carbon emission of unit product is inversely proportional to the market share of an enterprise and becomes an important index to measure the core competitiveness of an enterprise. View Full-Text
Keywords: cap-and-trade; green technology investment; duopoly; game theory cap-and-trade; green technology investment; duopoly; game theory
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Zheng, Y.; Zhang, G.; Zhang, W. A Duopoly Manufacturers’ Game Model Considering Green Technology Investment under a Cap-and-Trade System. Sustainability 2018, 10, 705.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top