Green Technology Investment Research Articles

Online promotion format selection for a supply chain with environment responsibility in an uncertain market

Corporate environmental responsibility has received considerable attention. In our study, we consider a supply chain in which a manufacturer invests in green technology to decrease the carbon footprint. The main issue addressed here is how the manufacturer selects the optimal online selling format between agency selling and reselling to ensure profitability with a lower carbon footprint. In an uncertain market with considering different pricing sequences in dual-channel promotion,we explore six scenarios. The results show that the different pricing sequences will not affect the equilibrium green degree and pricing strategies under agency selling, whereas it may result in an improved greenness in reselling format. Furthermore, under the interaction of uncertain demand, pricing sequence and green technology investment, we reveal the agent selling format is not always superior to the reselling format with a double-marginalization effect, which contrary to the general intuition. Specifically, in an optimistic market, the manufacturer is more profitable in reselling format when the promotion price set in online channel prior to traditional channel, and in a pessimistic market, the opposite pricing sequence formulated will bring a considerable benefit to the manufacturer.

Investment of Green Technology in a Tourism Supply Chain Under Competition

This article considers a green tourism supply chain (GTSC) composed of one scenic spot (SS) and two travel agencies (TAs) and derives the optimal green technology investments of the SS and TAs in the noncooperation, unilateral cooperation, and bilateral cooperation scenarios by establishing Stackelberg differential games. In addition, we investigate how the green tourism preference of tourists and the competition intensities of the TAs affect the green technology investments of the GTSC members and the greenness levels of tourism products. Our study indicates that the green technology investments of the GTSC members and the greenness levels of tourism products increase with the increasing of tourists’ green tourism preference. We also find that the green technology investments of the TAs and the greenness levels of tourism products change along with the competition intensity of the TAs, but the green technology investment of the SS remains unchanged. Meanwhile, we propose a bilateral cooperation policy that can achieve Pareto improvement of the GTSC performance.

When to invest in electric vehicles under dual credit policy: A real options approach

AbstractThis research aims to investigate traditional vehicle manufacturers' green technology investment theory under dual credit policy from the perspective of real options, overcoming earlier investigations of this issue that considered it only from a stability or single uncertainty perspective. An analytical real options model was first provided for traditional automaker investment. Then we solved the analytical solution for the electric vehicle investment threshold based on the uncertainty of credit price and fuel vehicle market scenarios. The optimal electric vehicle investment timing is demonstrated using numerical simulation. Results show that (1) when the fuel vehicle market demand falls to a certain level, automakers will choose to make electric vehicle investments regardless of how the credit price changes in the market; (2) the effect of volatility on the investment threshold depends on the covariance or correlation coefficient; (3) the numerical simulation results revealed that the credit price drift rate, risk‐free rate, correlation parameters, and electric vehicle production cost all have a positive impact on the electric vehicle investment region, whereas the drift rate of fuel vehicle and electric vehicle production cost have a negative impact. These results can be used to make theoretical conclusions about electric vehicle investments.

Supply chain coordination with flexible payment policy under effect of green technology investments

At present, augmentation of carbon gases in atmosphere has become a major concern. Regulatory bodies in many countries have focused on reduction of carbon emissions. Several countries follow carbon tax and carbon cap trade policy to control emission of carbon gases. This study has been carried out to obtain joint inventory policies for a supply chain involving a manufacturer and a whole-seller. Moreover, the manufacturer invests in green technology to reduce units of carbon gases. Products are considered deteriorating in nature. Manufacturer delivers product by adopting a lot-forlot policy to meet the whole-seller?s demand. The manufacturer offers the whole-seller flexible payment options including advance payment with discounted product price and delayed payment with increment in product price. Optimal policies for both individuals and the supply chain are discussed with aim to maximize total profit. The model is worked out and results are compared for four cases: (i) advance payment with green technology investments (ii) advance payment without green technology investments (iii) delayed payment with green technology investments (iv) delayed payment without green technology investments. A solution procedure has been proposed and explained through a numerical example. Study is concluded with managerial insights.

An EOQ model for deteriorating products with green technology investment and trade credit financing

An EOQ model for deteriorating products with green technology investment and trade credit financing

An EOQ model for Deteriorating Products with Green Technology Investment and Trade Credit Financing

An EOQ model for Deteriorating Products with Green Technology Investment and Trade Credit Financing

Sustainable fuzzy inventory model for deteriorating item with partial backordering along with social and environmental responsibility under the effect of learning

Mitigating carbon emissions and waste, along with economic objectives, are the major concerns for businesses and industries today. Current studies have underlined the requirement to shift the company from entrepreneur to ecopreneur with three goals, i.e., social, economic, and environmental sustainability. This paper investigates an economic order quantity model for deteriorating items with partial backordering on integrating the factors that affect the environment and society. Carbon emissions linked to operational activities of inventory can be reduced with the help of investment in green technology. Deterioration is controlled here with the help of investment in preservation technology. Dumping of waste without the proper mechanism has a hazardous effect on society. So, the cost is also included in this study to adopt the appropriate means to dispose of the wastage. Here, imprecise demand with selling price and advertisement cost-dependent demand is considered. This paper provides some theoretical results related to the concavity of the objective function and solution algorithm to obtain the optimal values of decision variables. A numerical analysis is presented to validate the model. Concavity is demonstrated graphically by considering the decision variables in a pair. Results indicate that as the capital investment in preservation technology rises from 3 to 8 units, around 83% and 90% declines in deterioration rate and disposable cost are observed, respectively. Due to the investment in preservation technology, the disposable cost reduces and profit increases to a certain level. A decline of 4% in carbon footprints is observed due to enhancing the investment in green technology by 33%. In the end, sensitivity analysis has been performed and managerial insights have been provided.

Advertisement policy for dual-channel within emissions-controlled flexible production system

Nowadays, industrial firms are very much careful to build a green environment by reducing carbon emissions. The government imposes some rules and regulations to provide a better eco-friendly environment. In this study, the cap-and-trade mechanism has been considered in a production model to control the carbon emissions rate. The manufacturers invest in advanced green technology to reduce per unit emissions. As online and offline selling is crucial to any industry for increasing customer demand, the manufacturers sell their products by dual-channel and advertise their products by online channel to make more popular of their products. Keeping these in mind, a sustainable flexible production model with single-type substitutable product production is considered here by imposing a cap-and-tax policy, investing in green technology, and advertising for products. This model is divided into two cases: with and without investment in green technology. The demand of each manufacturer depends upon an online selling price, an offline selling price, and an online advertisement of the product. A classical optimization technique helps to get the optimum strategies for the online selling price, offline selling price, advertisement investment, green technology, cycle time, and production rate. From the numerical study, it is proved that the industry gets 6.97% more profit in the case of green technology investment and the proposed study gives 5.74% more profit than the traditional production system. Sensitivity analysis and managerial insights are performed.

Green technology licensing: Evaluating government subsidies based on different efficiency levels across competitors

AbstractGreen technology development results in manufacturers in traditional industries reducing carbon emissions to alleviate pressure on the ecological environment. Some manufacturers efficiently adopt this green technology and some do not. An effective green technology licensing strategy can promote the diffusion of technology from highly efficient manufacturers to those who are less efficient. The government has implemented subsidies to promote green technology among manufacturers. Manufacturers with high levels of technology efficiency should obtain a high level of licensing income; however, it is unclear whether these licensing rewards are effective, especially in the face of fierce market competition. What is the government's optimal subsidy policy to address this problem? In this study, given a possible government subsidy, we develop a game theory model that includes Manufacturer H, with relatively high green technology investment efficiency, and Manufacturer L, with low levels of efficiency. The two manufacturers engage in a two‐dimensional competition in green technology investment and sales volume. We examine the manufacturers' profitability with and without green technology licensing, called Scenario Y and Scenario N, respectively. We identify “win–win” situations for the two competing manufacturers. Specifically, the government should increase the subsidy when the efficiency of industrial green investment is low, Manufacturer L has a clear disadvantage with respect to efficiency, and the competition is fierce.

Pythagorean Fuzzy Storage Capacity with Controllable Carbon Emission Incorporating Green Technology Investment on a Two-Depository System

Global warming is mainly caused by carbon emissions. Currently, fewer countries are concentrating on reducing carbon emissions. The primary strategy utilized by numerous countries to achieve carbon emissions reduction is the carbon tax policy. With this in mind, a sustainable two-warehouse inventory model was taken carbon tax into account for a controllable carbon emissions rate by investing in green technology initiatives under uncertain emission and cost parameters. The globe is currently experiencing an eco-friendly period. Many individuals are interested in purchasing natural or herbal items since they are made from natural sources and do not affect the environment. The demand for products made with herbal or natural ingredients is considered eco-friendly demand. This study examines a two-warehouse inventory model of deteriorating commodities with price and marketing-dependent eco-friendly demand. The inventory system is presented to handle the inventory in the depository with last-in-first-out and first-in-first-out strategies. After comparing both the policies under deterioration rate and holding cost, this study recommended a suitable dispatch policy. Interval-valued numbers and fuzzy numbers are the mathematical techniques that deal with uncertainties, so this model’s emission and cost parameters are taken as interval-valued numbers, and the storage capacity of the owned warehouse is a Pythagorean fuzzy number. The optimal solution for the two-warehouse inventory system is evaluated by taking the parametric form of interval-valued cost parameters and the new concept of the ranking function of triangular Pythagorean fuzzy numbers. Numerical results prove that emissions are reduced by 87% under green technology investment in both policies. As a consequence, in the FIFO policy, the total cost of the two-warehouse inventory system decreases by 34.45% and cycle length increases by 5.72%, and in the LIFO policy, the total cost of the two-warehouse inventory system decreases by 34.42% and cycle length increases by 11.19%. Sensitivity analysis of the key parameters has been performed to study the effect of various parameters on the optimal solution.

Sustainability and Green Technology Innovation

This study investigates the relationships between investments in green technology and involvement in sustainability. Small firms' interest in investing in green technology is influenced by how involved they are with sustainability. Investments in green technologies, however, do not seem to be primarily motivated by participation in environmental sustainability. The study's findings demonstrate that businesses using green technologies do not prioritise environmental sustainability over other goals like creating economic and social value. Supposedly, the triple bottom line, which operates in this space, aims to assess corporate performance in terms of its effects on the environment and interested parties in addition to concerns about profitability. The study of sustainability in management information systems has thus far been constrained by the field of green IT, which largely focuses on reducing the energy consumption of corporate IT systems. It shows how to integrate human, supply chain, and IT resources to help businesses develop sustainability capabilities that enable them to deliver sustainable values to relevant stakeholders and maintain competitive advantage. In particular, the development of sustainability capabilities is addressed in relation to the role of automate, inform, transform, and infrastructure IT resources. The project calls for IT to play a daring new role in sustainability that goes beyond lowering energy usage. The ramifications for future IT and sustainability research and management practise are also discussed.

Eco-Innovation in New Energy Vehicle Supply Chains under Government Subsidies

The pressure to reduce emissions has induced the government to provide subsidies to urge eco-innovation in the new energy vehicle industry. Although the giving of such subsidies to the new energy vehicle industry has been practiced for a long time, few studies consider how the subsidy policies affect social welfare and the manufacturers’ profits and eco-innovation levels in the presence of the technology gap and the spillover effect. This paper fills the gap in the literature by studying two competitive supply chains consisting of two manufacturers and two retailers. Under three different subsidy policies, we derive the equilibrium outcomes. We find that, as the technology gap increases, the eco-innovation level of the leader increases, whereas the eco-innovation level of the follower decreases. We further investigate the conditions under which subsidy policy is better from the perspective of eco-innovation levels, firms, and social welfare. Specifically, under the centralized setting, the social welfare is lower with the unit production subsidy than with the green technology investment subsidy when the technology gap is low.

Green bonds, financing constraints, and green innovation

This study explores the impact of green bond issuance on green innovation and green technologies. With the deepening of China's supply-side reform, the government and enterprises are paying increasing attention to sustainable development. Green bond, a fixed-income instrument specifically earmarked to raise money for climate and environmental projects, is also playing an increasingly important role in China's economy as the government guides enterprises on a sustainable development path. The modeling and analysis of the difference-in-differences method show that enterprises can significantly improve their green innovations by issuing green bonds. It is hereby assumed that (1) the issuance of green bonds by enterprises can improve their green technology and green innovations by easing their financing constraints; (2) both the external environment and the internal governance structure of an enterprise can affect the effect of green bond issuance on green innovation; (3) enterprises with different characteristics are exposed to different green innovations when issuing green bonds. Herein, the empirical results support the above-mentioned hypotheses. Specifically, enterprises can significantly advance and increase their investment in green technologies and environmental-friendly innovations by issuing green bonds. A greater environmental regulation intensity of the province in which the enterprise is located indicates a greater effect of issuing green bonds on green innovation, while a greater check-and-balance ownership structure suggests a greater impact of issuing green bonds on green innovation. The effect of the green bond issuance on green innovation is more significant for enterprises in high financial development regions and those large-scale enterprises.

Carbon emission effects of publicly planned logistics nodes: experience from Chengdu, China.

Both academics and policymakers regard publicly planned logistics nodes (PPLN) as a potential measure to promote logistics agglomeration and mitigate environmental damage caused by logistics activities. However, such measure may lead to non-linear carbon emission effect from the perspective of agglomeration economy, and empirical evidences are yet to be found to verify this inference. This paper uses DID method and mediating effect models to explore the effects and mechanisms of PPLN on CO2 emissions with panel data from 2000 to 2017 in Chengdu, China. Our findings show that PPLN promotes the agglomeration of both small and large-scale logistics enterprises and increases carbon emissions. In addition, the agglomeration of large-scale logistics enterprises can reduce carbon emissions; the opposite is true for smaller ones. Despite the continuous diminishing of the carbon emission increase, the emission-reduction effect has not been achieved through PPLN operations. Based on the results, the study recommends that the government should appropriately determine the location and scale of PPLN, advocate green construction and industrial upgrading, and adopt differentiated regulatory and incentive measures for enterprises. Logistics enterprises can increase their investment in green technologies and strengthen cooperation with their customers.

Does ambient air quality standard contribute to green innovation of enterprises in China? Implications for environmental protection and public health.

In the post-COVID-19 era, environmental pollution has been a serious threat to public health. Enterprises are in urgent need of enhancing green technology innovation as the main source of pollutant emissions, and it is necessary for governments to support green innovation of enterprises to reduce pollutant emissions and promote public health. In this context, this paper investigates whether the Ambient Air Quality Standard (AAQS) implemented in 2012 in China contributes to green innovation of enterprises, to provide implications for environmental protection and public health. By using panel data of Chinese A-share listed companies from 2008 to 2020, this study adopts the difference-in-difference model to analyze the policy impact of environmental regulation on green innovation of enterprises and its internal mechanism. The results show that AAQS has significantly improved the green innovation of enterprises. Furthermore, AAQS affects the green innovation of enterprises by virtue of two mechanism paths: compliance cost effect and innovation offset effect. On the one hand, AAQS leads to an increase in production costs of enterprises, thus inhibiting green innovation activities of enterprises. On the other hand, AAQS encourages enterprises to increase R&D investment in green technology, thus enhancing their green innovation. In addition, the impact of AAQS on firms' green innovation has heterogeneous characteristics. Our findings not only enrich the studies of environmental regulation and green innovation of enterprises but also provide policymakers in China and other developing countries with implications for environmental protection and public health improvement.

Renewable energy and CO2 emissions in G7 countries: does the level of expenditure on green energy technologies matter?

Promoting green energy is generally considered a crucial way to mitigate energy-related CO2 emissions. However, the level at which a country's expenditure on green energy technologies interacts with renewable energy consumption to save the planet has been ignored in the literature. Within the context of the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model, this study investigates the interaction effect of renewable energy and expenditure on green energy technologies in mitigating CO2 emissions in G7 countries over the period 1990-2017. The empirical results based on the Method of Moments-Quantile Regression (MM-QR) with fixed effectssuggest that renewable energy and expenditure on green energy technologies have a negative and heterogeneous effect on CO2 emissions. The interaction term has a stronger negative and heterogeneous effect across quantiles distribution of CO2 emissions. This suggests that the extent to which renewable energy exerts downward pressure on CO2 emissions is dependent on countries' expenditures on green energy technologies. In addition, the effect of the interaction term is stronger in countries with lower levels of CO2 emissions. Given these findings, the study suggests the need to promote investment in green energy technologies as a catalytic converter to mitigate CO2 emissions.

Role of environmental regulations, green finance, and investment in green technologies in green total factor productivity: Empirical evidence from Asian region

Promoting coordinated industrialization and environmental development is an objective set forth by the United Nations for Sustainable Development and shared by different nations worldwide. Environmental regulation (ER), green finance (GF), and increased investment in green technologies (IGT) are major initiatives in this regard. These fields have become prominent in achieving green development and climate recovery objectives. Several factors affecting green productivity growth have been analyzed in the literature; nevertheless, quantitative studies focusing on ER, GF, IGT, and green productivity are scarce. This research investigates the role of ER, GF, foreign direct investment (FDI), and IGT on GTFP in 27 Chinese provinces from 2010 to 2021. The findings reveal that strict ER significantly increases green productivity in China with a 1.826 beta value. In addition, other factors such as GF, FDI, and IGT contribute substantially to green manufacturing. This study is one of the first to integrate ER, GF, FDI, and IGT into a coherent framework of green productivity and considers the negative yield in GTFP as ignored in the previous ones. Based on empirical findings, policy implications for environmental planning in China are made.

The impact of local government competition and green technology innovation on economic low-carbon transition: new insights from China.

The government-led Chinese economic development system determines that local government competition is a significant factor affecting the economic low-carbon transition. Driving an economic development mode with green technology innovation as the core is the critical path to realizing an economic low-carbon transition. Consequently, it is of significant practical relevance to investigate the impact of local government competition and green technology innovation on the economic low-carbon transition under the government-led Chinese economic development system. This paper systematically explores the nexus between green technology innovation and economic low-carbon transition in terms of local government competition perspective using the system generalized method of moments, panel threshold model, and geographically weighted regression on the basis of a dataset of 30 provincial administrative areas in China from a period of 2006-2019. The results indicate that green technology innovation significantly promotes the economic low-carbon transition. Local government competition not only significantly dampens the economic low-carbon transition but also considerably inhibits the positive effect of green technology innovation on the economic low-carbon transition. A significant N-shaped association is evident between green technology innovation and the economic low-carbon transition when green technology innovation is applied as a threshold, while such association is insignificant when local government competition is used as a threshold. Compared with high-competition intensity areas, green technology innovation promotes economic low-carbon transition weaker in low- competition intensity areas, while local government competition inhibits economic low-carbon transition stronger. However, local government competition significantly inhibits the positive effect of green technology innovation on the economic low-carbon transition in low-competition intensity areas, while insignificant in high-competition intensity areas. The geographically weighted regression technique as a whole also verified the above results. Therefore, policymakers should not only increase research and development investment in green technologies, but also develop a regionally linked low-carbon emission reduction system to avoid ineffective competition among governments to facilitate the earlier fulfillment of the "dual carbon" goal.

Optimization of carbon performance evaluation and its application to strategy decision for investment of green technology innovation

Carbon regulation and the mechanism of carbon emission right motivate firms with high carbon consumption and emission to transition to a production and operation model with higher carbon usage. Green technology innovation is the usual way out, with carbon performance metrics serving as guideposts along the route. The intersection of the two topics is the focus of this study. The carbon performance evaluation is optimized by taking carbon asset variance into account. This criteria investigates investment in green technology innovation for its relationship with carbon performance, and investment plans are assessed and determined for the optimum carbon performance based on a stochastic model using geometric Brownian motion for Monte Carlo simulation and prediction. Strategy design of green technology investment is optimized by comparison among a series of proposed schemes, and the conclusions based on case study are applicable for similar situations of enterprises with carbon consumption. The following are the ways in which this research contributes. 1) Improvement of the carbon performance measure by the addition of carbon asset modifications. 2) The practical application of carbon performance, which serves to direct management practice, is illustrated and realized.

The response of green energy and technology investment to climate policy uncertainty: An application of twin transitions strategy

Twin transition strategy enforces the indisputable complementary relationship between green and digital transitions. This socio-technical process necessitates a paradigmatic shift to translate policy related uncertainties into twin transition strategies. With this background, the present study investigates the responsiveness of green markets to climate policy uncertainty (CPU) in the US economy by applying the cross-quantilogram approach and recently devised indices of CPU, green equity and green bond from July 30, 2014 to March 31, 2021. The empirical findings demonstrate that the asymmetric relationship between green financial investment and CPU is positively related in the longer memory during period of high uncertainty. At the bearish state of the market, the responsiveness of green equity returns to CPU is profound compared to green equities in the medium memory. In general, CPU provides more opportunities in the green equity market than in the green bond market. The asymmetric behaviour is more prominent in the long run, implying that both green bond and green equity indices demonstrate higher portfolio performance in the long term than in the short term. This study shows that CPU provides a better explanation for green market responsiveness than other uncertainty indices.