ORIGINAL RESEARCH
Pricing Ecological Products under Duopoly
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Jun Chen 1,2
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1
School of Economics, Guangdong University of Finance & Economics, Guangzhou 510320, China
 
2
The Key Lab of Coevolution between Ecological Environment Resources and Economic Society System, Guangdong University of Finance & Economics, Guangzhou 510320, China
 
 
Submission date: 2023-07-11
 
 
Final revision date: 2024-01-07
 
 
Acceptance date: 2024-01-20
 
 
Online publication date: 2024-04-18
 
 
Corresponding author
Jun Chen   

School of Economics, Guangdong University of Finance & Economics, No.21 Luntou Road, 510320, Guangzhou, China
 
 
 
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ABSTRACT
The construction of ecological civilization has put forward new requirements for the market-oriented reform of ecological products, and pricing is the most effective mechanism for marketization. This paper actively expands on the definition of ecological products and considers two game models to compare different consumption preferences and tax/subsidy policies. The results show that, under a static game, ecological products pose a disadvantage, which can lead to negative profits. In a dynamic game, an ecological firm can obtain higher profits by virtue of the positive externalities of its products. Changes in subsidies and taxes can achieve the expected effect of policies, which may reduce the price of ecological products and thus improve competitiveness. Meanwhile, we found that tax policy regulation plays a more significant role than a supporting subsidy, but the ecological degree effect may be the opposite under extreme conditions. This research provides theoretical guidance for promoting the use of ecological products for environmental improvement.
eISSN:2083-5906
ISSN:1230-1485
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