Impact of hybrid-enabling technology on Bertrand-Nash equilibrium subject to energy sources

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

In this chapter, we quantify an optimal level of subsidy for the sharing of hybrid-enabling technology innovation in an energy market while examining its Bertrand-Nash equilibrium. We formulate this as a Stochastic Differential Game (SDG) and analyze the stability of the Stuckenberg, Nash and cooperative equilibria via a feedback control strategy. We then adopt limit expectation and variance of the improvement degree to identify the influence of the external environment on the decision maker. We show that the game depends on its parameters and the equilibria chosen. Ultimately, our use of short-run price competition characterized by strategic supplies for renewable and fossil resources provides a more robust model than that presented by Bertrand-Edgworth with endogenous capacity. As a result, we highlight that R&D investments in hybrid-enabling technology can ensure immediate reliability and affordability within energy production and implementation of policy instruments.
Original languageEnglish
Title of host publicationCarbon capture
EditorsSyed Abdul Rehman Khan
Place of PublicationOnline
PublisherInTechOpen
Chapter5
Pages1-26
Number of pages26
ISBN (Electronic)9781789857252, 9781789858549
ISBN (Print)9781789858532
DOIs
Publication statusPublished - 17 Mar 2021

Keywords

  • Bertrand duopoly game
  • cooperative game
  • hybrid-enabling technology
  • Nash non-cooperative game
  • Stackelberg game
  • stochastic differential game

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