Journal of Numerical Simulations in Physics and Mathematics | Volume 3, Issue 1: 19-37, 2026 | DOI: 10.62762/JNSPM.2026.289453
Abstract
Corporate carbon abatement is commonly modeled as a direct and continuous response to environmental regulation or green innovation. Such representations cannot fully explain persistent differences among firms facing similar policy conditions or distinguish the pressure required to initiate a low-carbon transition from that needed to sustain it. This study develops a three-state continuous-time model linking corporate carbon abatement, accumulated green innovation, and effective regulatory pressure, with green market preference treated as an external demand-pull parameter. Green innovation lowers the marginal cost of abatement, abatement generates learning and commercial returns to innovation... More >
Graphical Abstract