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What is Green Investment Timing in Duopolies about?

This paper analyzes the impact of the timing of green technology investments in a duopoly under environmental regulation, focusing on simultaneous versus sequential abatement decisions. It finds that sequential investments lead to higher overall abatement compared to simultaneous decisions, particularly when free-riding incentives are strong. The results suggest that the timing of investment is crucial when it occurs before regulatory measures are set, as it influences firms

Author

Ana Claudia Mota

Language

EN