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Cooperative green innovation.

Pu-Yan Nie1, Hong-Xing Wen2, Chan Wang3

  • 1School of Economics, Institute of Guangdong High-Quality Development, Guangdong University of Finance & Economics (GDUFE), Guangzhou, 510320, People's Republic of China.

Environmental Science and Pollution Research International
|January 9, 2022
PubMed
Summary
This summary is machine-generated.

Cooperative green innovation aids climate change mitigation. Game theory reveals emission taxes spur innovation, but free-riding and underinvestment persist, necessitating policy interventions like regulated investment and subsidies.

Keywords:
CooperationEmission taxFree riderGreen innovation

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Area of Science:

  • Environmental Economics
  • Game Theory
  • Climate Change Mitigation

Background:

  • Cooperative green innovation is crucial for addressing global climate change.
  • Understanding firm behavior in green innovation is essential for effective policy.

Purpose of the Study:

  • To analyze cooperative green innovation strategies using game theory.
  • To identify factors influencing firms' participation in green innovation.

Main Methods:

  • Application of game theory models to simulate firm interactions in cooperative green innovation.
  • Analysis of the impact of emission taxes on innovation incentives.
  • Examination of the free-rider problem in cooperative ventures.

Main Results:

  • Emission taxes effectively stimulate green innovation across all firms.
  • The free-rider phenomenon is prevalent, especially when cooperative green innovation involves significant investment.
  • Underinvestment in cooperative green innovation is a consistent outcome.

Conclusions:

  • Policy interventions are necessary to overcome market failures in cooperative green innovation.
  • Regulating innovative investment and providing subsidies can enhance cooperative green innovation efforts.