This paper analyzes a dynamic model of the firm. We focus on the effect of investment in green energy. We explicitly take into account that green energy has a positive side effect, namely that it contributes to the goodwill of the firm and thus increases demand. Different models are proposed and the solutions range from monotonic saddle point convergence to history-dependent Skiba behavior.
|Name||International Series in Operations Research & Management Science|
- green capital
- optimal investment
- Skiba curve