Low-Carbon Policy in a Duopoly with Differentiated Products, Green R&D, and Knowledge Spillovers: A Cournot–Bertrand Comparison

Key Points

• The central aim is to determine how low-carbon policies influence R&D, emissions, profits, and overall welfare in a dual-firm environment.
• Developed a three-stage game-theoretic duopoly model
• Analyzed differentiated products and knowledge spillovers
• Considered both Cournot and Bertrand competition
• Examined commitment and non-commitment regimes in R&D
• Quantified policy impacts on R&D activities and emissions levels
• Identified variations in profits across different competition modes
• Demonstrated welfare effects based on policy-timing regimes
• Provided insights into the economic mechanisms at play in low-carbon transitions

Abstract