Research on Decision-Making Behavior of Oligopolistic Competitive Enterprises under Initial Unit Carbon Emission Level

Authors

  • Chunhua Qiao

DOI:

https://doi.org/10.54097/2s4ysm25

Keywords:

Carbon Quota Allocation, Carbon Trading, Carbon Emissions, Carbon Emission Reduction, Oligopolistic Competition

Abstract

This article studies the decision-making behavior of various oligopolistic competitive enterprises based on the initial unit carbon emission level by establishing a game model. Research has shown that under this allocation mechanism, the output of low emission enterprises is always greater than that of high emission enterprises, but their emission reduction level is always lower than that of high emission enterprises. Secondly, the profits of enterprises are closely related to the potential market demand. When the potential market demand is strong, the profits of low emission enterprises are greater than those of high emission enterprises; When the potential demand in the market is low, high emission enterprises can obtain higher profits from lower emission enterprises.

Downloads

Download data is not yet available.

References

[1] Xu J, Huang Q, Lv C, et al. Carbon emissions reductions oriented dynamic equilibrium strategy using biomass-coal co-firing. Energy Policy. 2018, 123:184-197.

[2] Green R, Yatchew A. Support schemes for renewable energy: an economic analysis. Economics of Energy & Environmental Policy. 2012, 1(2):83-98.

[3] Fan XS, Chen KL, Chen Y-J. Is price commitment a better solution to control carbon emissions and promote technology investment? Management Science. 2023. 69(1):325-341.

[4] Nault BR. Equivalence of taxes and subsidies in the control of production externalities. Management Science. 1996, 42 (3): 307-320.

[5] Levi MD, Nault BR. Converting technology to mitigate environmental damage. Management Science. 2004, 50(8): 1015-1030.

[6] Subramanian R, Gupta S, Talbot B. Compliance strategies under permits for emissions. Production and Operations Management. 2007 16(6):763-779.

[7] Steenberghe V. Core-stable and equitable allocations of greenhouse gas emission permits. SSRN Electronic Journal. 2005

[8] Zheng W, Chen RD. The setting of initial allocation approaches of carbon emission permits. In 2011 fourth international conference on business intelligence and financial engineering (pp. 668-670). IEEE.

[9] Groenenberg H, Blok K. Benchmark-based emission allocation in a cap-and-trade system. Climate Policy. 2002, 2(1):105-109.

[10] Bode S. Multi-period emissions trading in the electricity sector-winners and losers. Energy Policy.2006, 34(6):680-691.

[11] Zhang LR, Li YK, Jia ZJ. Impact of carbon allowance allocation on power industry in China’s carbon trading market: Computable general equilibrium based analysis. Applied Energy. 2018, 229:814-827.

[12] Morrell P. An evaluation of possible EU air transport emissions trading scheme allocation methods. Energy Policy. 2007, 35 (11): 5562-5570.

[13] Zhang Y-J, Hao J-F. Carbon emission quota allocation among China’s industrial sectors based on the equity and efficiency principles. Annals of Operations Research.2016, 255(1-2):117-140.

Downloads

Published

28-05-2025

Issue

Section

Articles

How to Cite

Qiao, C. (2025). Research on Decision-Making Behavior of Oligopolistic Competitive Enterprises under Initial Unit Carbon Emission Level. Academic Journal of Management and Social Sciences, 11(2), 42-46. https://doi.org/10.54097/2s4ysm25