Duopoly Game with Green Efficiency Based on Ecological Modernization Theory

Abstract

Since the birth of ecological modernization theory in 1982, the problem of enterprise benefit and environmental protection has entered the field of view of academia and industry. Ecological modernization theory discusses the influence of government policy intervention (subsidy or penalty) on enterprise green innovation and then explains the possibility of enterprise revenue and enterprise green coexistence. Firstly, this paper gives a simple explanation of the theory of ecological modernization and then establishes several simple duopoly game models through multiple hypotheses. Moreover, through comparative static analysis, it discusses the influence of government policies on enterprise carbon emissions and the influence of enterprise carbon emission decisions on enterprise green efficiency. The analysis shows that the governments policy intervention can effectively reduce the carbon emissions of enterprises. Meanwhile, in the same market, a number of carbon emission enterprises will reduce their own carbon emission levels according to the carbon emission situation of oligopolies with carbon emission initiatives.