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Interaction between enterprises and consumers in a market of carbon-labeled products: a game theoretical analysis

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Abstract

This paper applies an evolutionary game theoretical analysis combined with system dynamics to model strategic interaction between enterprises and consumers with bounded rationality in a carbon-labeled product market. Through the game theoretical analysis, possible equilibriums are predicted between these two players, in order to provide market recommendations for promotion of carbon-labeled products. The simulation results indicated that it is impossible to promote the carbon-labeled products relying on the market’s inherent functions. After incorporating dynamic subsidies, both of the players have evolutionary stable strategies, revealing it has an incentive impact on the market. Limitations of the game theoretical analysis are discussed to lay out a foundation for further study.

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Funding

This study is sponsored by National Natural Science Foundation of China (No. 41301639; No. 41571520), Sichuan Provincial Key Technology Support (No. 2014GZ0168), and the Fundamental Research Funds for the Central Universities (No. 2682014RC04).

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Authors and Affiliations

  1. Faculty of Geosciences and Environmental Engineering, Southwest Jiaotong University, Chengdu, 611756, China

    Rui Zhao & Ya Huang

  2. School of Finance, Zhongnan University of Economics and Law, Wuhan, 430073, China

    Jiaojie Han

  3. School of Environmental Science and Engineering, Shanghai Jiaotong University, Shanghai, 200240, China

    Shaozhuo Zhong

Authors
  1. Rui Zhao
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  2. Jiaojie Han
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  3. Shaozhuo Zhong
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  4. Ya Huang
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Corresponding author

Correspondence to Rui Zhao.

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Responsible editor: Philippe Garrigues

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Zhao, R., Han, J., Zhong, S. et al. Interaction between enterprises and consumers in a market of carbon-labeled products: a game theoretical analysis. Environ Sci Pollut Res 25, 1394–1404 (2018). https://doi.org/10.1007/s11356-017-0595-9

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  • DOI: https://doi.org/10.1007/s11356-017-0595-9

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