The Research About Incentives Of Firms’ Low-carbon Behavior In The Low-carbon Economy

Since the industrial revolution, human beings have discharged too much more greenhousegases to the atmosphere, which is far more beyond the carrying capacity of the naturalenvironment. The cumulative effect of the greenhouse gases has triggered a series of majorthreat to the survival of mankind, for example the global warming and climate change problems.Facing the global warming problem, many countries began to work together to reducegreenhouse gas emissions by human activities, which aimed to protect not only the naturalenvironment but also human beings. In society, human beings’ production activities andconsumption activities cause to the emissions of greenhouse gas. While the production activitiesaccounts for the majority of total emissions. As the firms discharge the greenhouse gases inreality, it is very important to reduce the emissions from firms. How to reduce carbon emissionshas become a top priority of enterprises. The factors driving companies to reduce carbonemissions can form many ways. Based on the study of literature, this paper choose technicalfactors, market factors about consumer demand and government policy factors to analyze theimpact of firms’ low carbon behavior.The development and widespread of low-carbon technologies are the only way to insurethe level of human life. In the third and fourth chapters, this paper discusses how the low carbontechnologies change the firms’ low carbon behavior. According to the firms’ goals and thedifferent forms of low-carbon technology research and development, the firm’ choices will bedivided into four situations. Based on the comparative analysis of the four different situations,the results show that the cartel under the joint research and development will obtain the highest level of research and development of low-carbon technologies, the lowest cost of carbonemissions, the lowest product price and the highest corporate profits. Based on these conclusions,firms’ should do research and development together to obtain the highest profits. The consumers’demand also act an important role in firms’ low carbon strategy. This paper analyzes thesefactors including demographic characteristics, psychological characteristics, socio-culturalfactors, low-carbon technologies and government policy factors. These factors are also added tothe consumer buying behavior mechanism. Government policy has an direct impact to the firms’low carbon behavior. In government environmental policy model, the results show that carbontax and the carbon emissions trading are similar to some extent. This paper also analyze thegovernment technology model in an theoretical perspective.The firms’ behavior and government policy are in close interaction. By constructing athree-stage duopoly game model, in section2about chapter5this paper conclude that in mostsituation, the firms that under the joint research and development will obtain a higher level lowcarbon technology, a higher level of social welfare. The corresponding carbon abatement costsimposed by government enterprises is also lower. For firms under joint research anddevelopment of low-carbon technologies will always produce higher profits than independentresearch. In section2about chapter5, this paper also build a three-stage duopoly game model.The conclusions show that the firms under the joint research and development will obtain ahigher level low carbon technology, a higher level of social welfare. The correspondinggovernment subsidies for low carbon technology is also in low level. For firms under jointresearch and development of low-carbon technologies will always produce higher profits thanindependent research.