Journal of Industrial and Systems Engineering

Journal of Industrial and Systems Engineering

Environmental Policy Design in Green Product Development: Examining Cannibalization in Competitive Markets

Document Type : conference paper

Authors
1 artment of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan 84156-83111, Iran
2 Department of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan 84156-83111, Iran
Abstract
This study develops a game-theoretic model to examine green product development (GPD) strategies in competitive markets, emphasizing trade-offs between innovation incentives, environmental policy interventions, and adaptive cannibalization strategies. Our findings indicate optimal government intervention can significantly enhance sustainable innovation, whereas overly aggressive interventions may diminish incentives. We reveal that strategic pricing can mitigate cannibalization effects while enhancing overall sustainability. These insights provide a theoretical foundation for effective environmental policy-making and practical strategies for firms navigating sustainability in competitive environments.
Keywords

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