Pricing and long-term decisions of manufacturers and electricity suppliers toward sustainable development under eco-innovation and renewable electricity generation: a real case study

Manufacturers and electricity companies can play a vital role in sustainable development through eco-innovation implementation and renewable electricity generation. Investigating electricity suppliers’ and product manufacturers’ decisions is essential to illustrate the evolution of their behavior. This paper establishes a two-population evolutionary game, focusing on the strategies of electricity suppliers and manufacturers. We consider two strategies for the electricity suppliers: (1) renewable electricity generation along with non-renewable electricity and (2) non-renewable electricity generation, and two strategies for manufacturers: (1) eco-innovation implementation and (2) Non-eco-innovation implementation. Also, pricing decisions for products and renewable electricity and determining the level of eco-innovation are investigated in this research. The results demonstrate that suppliers’ evolutionary behavior leads to renewable electricity generation, and manufacturers’ behavior drives eco-innovation implementation under the government’s support. Also, the results indicate that the entire population of electricity suppliers shift toward their sustainable strategy, i.e., renewable electricity generation, in a shorter time than manufacturers.