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Green Production Strategy.pdf

GLO-DP-0636.pdf
Preview of Green Production Strategy
🔗 Source: econstor.eu
📊 Size: 1.04 MB
👤 Author: Buccella, Domenico; Fanti, Luciano; Gori, Luca
⬇️ Downloads: 94

Summary

Firms' strategic choice of adopting abatement technology in a duopoly with pollution externalities and emission tax leads to different Nash equilibria, ranging from dirty to green production, depending on societal awareness and technological progress. If societal awareness is low and abatement costs are high, firms choose not to abate, while high awareness and low costs lead to abatement, with no conflict between self-interest and mutual benefit. Multiple equilibria or a "green" prisoner's dilemma may also emerge, and the society is better off when firms adopt green technology, as social welfare is higher and pollution is lower.

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Description

Firms' strategic choice of adopting abatement technology in a duopoly with pollution externalities and emission tax leads to different Nash equilibria, ranging...

Technical Information

  • File Format: PDF
  • File Size: 1.04 MB
  • Pages: 28
  • Language: EN
  • Author: Buccella, Domenico; Fanti, Luciano; Gori, Luca
  • Total Downloads: 94
  • Last Updated: 7 days ago

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