Work

Operational research models for green technology cross‐licensing with known carbon quota trading prices

Year: 2023

Type: article

Abstract: Green finance contributes significantly to the openness and transparency of carbon quota trading prices, which is conducive to the development of green technology innovation. With known carbon quota trading prices, we construct game‐based operational research models to analyze fixed‐fee and mixed‐fee cross‐licensing strategies for green technologies between two competing firms under the cap‐and‐trade policy. We compare the equilibrium outcomes of no‐licensing, fixed‐fee, and mixed‐fee cross‐licensing strategies. The findings reveal that product pricing under the fixed‐fee cross‐licensing strategy is beneficial to consumers. The mixed‐fee cross‐licensing strategy is optimal in terms of firms' total profits. When the degree of product substitutions is large and the improvement in carbon emissions is small, firms are more inclined to the no‐licensing strategy. We further introduce the revenue‐sharing contract, which can extend the Pareto improvement domain and improve the performance of green technology cross‐licensing strategies.

Source: International Transactions in Operational Research

DOI: 10.1111/itor.13338

Authors: Qi Zhang, Yuwei Li, Gui‐Hua Lin, Xide Zhu

Institution: Shanghai University

Language: English

Topic: Environmental Sustainability in Business

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure

Open Access status: bronze

Funder: National Natural Science Foundation of China