Technology R&D and sharing in carbon emission reduction in a duopoly

This study constructs a duopoly model considering technology R&D and technology sharing in carbon emission reduction, analyzes the market equilibrium results and the impacts of product differentiation, R&D costs and sharing charges in four cases, and analyzes firms' emission reduction technologies R&D decisions and technology sharing decisions by comparing. The results show that, in most cases, an increase in product differentiation can increase the two firms' profits. However, under price competition, the increase in product differentiation reduces Firm 2's profit; one firm's technology R&D decision is affected by the other, and it is also affected by R&D marginal cost and R&D fixed costs; sharing charges affect the achievement of technology-sharing agreements. When sharing charges are within a certain range, both firms achieve win-win results. Sharing emission reduction technology can improve social welfare and reduce environmental damage, which depends on sharing charges.

Automated summary

This study constructs a duopoly model that considers technology R&D and sharing in carbon emission reduction. It analyzes market equilibrium, the impact of product differentiation, R&D costs, and sharing charges in four scenarios. The study also examines firms' decisions on R&D and technology sharing. The results suggest that product differentiation can increase firms' profits in most cases, but under price competition, it can reduce the profit of one firm. The decision on technology R&D is influenced by the other firm, as well as the costs associated with it. Sharing charges also affect the achievement of technology-sharing agreements.