A dynamic oligopoly with international trade and the environment: an evolutionary approach

This article examines a dynamic oligopoly model in which firms choose between dirty and green technologies under international trade. We begin by analysing the static problem of Nash equilibrium in an oligopolistic industry where goods are sold both domestically and abroad. Using an evolutionary approach, we then study the resulting dynamic system, focusing on the emergence of different long-term scenarios shaped by technological characteristics and the parameters of environmental and trade policies. Our findings demonstrate how environmental taxes and import tariffs strategically influence the transition to green technologies.