Scribd
Upload
5 views10 pages

Managing Energy

Uploaded by

Kashif javed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
5 views10 pages

Managing Energy

Uploaded by

Kashif javed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

JORNAL ARTICLE PART 2

BACKGRO U N D IN FO RM AT I O N

Green Products
Appeal to environmentally conscious consumers.
Capability to capture a price premium due to their
sustainable nature.
Market Dynamics
• Global Priority
• Market Opportunities
• CSR
• Impact on Competition
PROBLEM
STATEMENT
Climate Change
• A major global concern requiring a sustainable and green economy
by adopting low carbon (Wu et al., 2017).
• A strategic approach to appeal to environmentally conscious
consumers, potentially capturing a price premium and/or increasing
market share
• Vital for green growth and long-term environmental targets. (Klier et
al., 2020; Wang et al., 2020).
• Necessitates continuous improvement and adoption of green
technologies.
Research Focus
Market-driven incentives for green product innovation in an asymmetric
duopoly.
Exploration of outcomes without relying on direct government
intervention.
RESEARCH
METHODOL
OGY
Game Theory Approach
• Analyzes market dynamics and competition effects on green
innovation.
• Examination of strategic interactions between firms in the market.
Research Model:
• We have two firms 1 and 2. they have to choose to manufacture
either brown or green product under asymetric cost and gain
conditions.
Parameters
Payoff: profit of each firm when both produced brown product.
Innovation costs: Impact of financial investment in green technologies.
Demand creation effects: Influence on consumer demand for green products.
Business stealing effects: Impact on market share and competition.
Harm to non-innovating rivals: Consequences for firms not adopting green
innovations.
SCENARIOS
Simultaneous game: No information Sequential game: One firm observes the
about the rival’s choice. rival’s decision before making its own.
FINDINGS
SIMULTANEOUS GAME SEQUENTIAL GAME
• Product differentiation happens only under
• Product differentiation occurs with certainty
extreme cost asymmetry.
under extreme cost asymmetry.
• Firms with high innovation cost always goffer
• More likely to have a green market when at least
brown products.
one firm has low innovation costs.
• Intermediate innovation costs lead to
• Information availability increases the likelihood
randomization of decision.
of product differentiation.
MARKET OUTCOMES

DISCUSSIO
Fully green market requires all firms to have low innovation
costs.
Mixed market (green and brown products) possible with
extreme cost differences.

N
High innovation costs result in only brown products.

POLICY IMPLICATIONS
Policy Implications
Incentivize low-cost innovations.
Balance between environmental goals and product diversity.
Promote transparency in firms’ strategic decisions.
CONCLUSION

Market-Driven Green Innovation


Potential to foster green alternatives without government
intervention.
Important in a post-
pandemic context with increased government debt.

Future Research
Incorporate detailed demand specifications.
Explore multi-stage decisions and conduct numerical
simulations.
RECOMMENDATI
ONS
Incentivize Innovation
Financial support for R&D.
Collaboration and knowledge-sharing among firms.
Product Diversity
Encourage a variety of products for different consumer segments.
Support lower-income consumers with diverse alternatives.
Balance Environmental and Consumer Goals
Introduce mechanisms to support environmentally friendly products without
excessive consumer burden.
Transparency
Encourage visibility in the market and commitment to specific strategies to
reduce uncertainty.
THANK
YOU

You might also like