Table 2 The major parameters and notations.
Decision variables | |
\(p_{i}(t)\) | Unit sales price of the NEV i at time t, \(i=1, 2\) |
\(\omega _i(t)\) | Unit wholesale price of the NEV i at time t, \(i=1, 2\) |
g(t) | The green innovation level of the NEV manufacturer at time t |
State variable | |
m(t) | The energy efficiency of NEVs at time t |
Parameters | |
\(\mu\) | The NEV green innovation effectiveness parameter |
\(\eta\) | the rate of decay of energy efficiency levels of NEVs |
\(\alpha _{i}\) | The market volume of the NEV i, \(i=1, 2\) |
\(\varphi\) | The level of demand expansion for greening innovations in the NEV |
\(\beta\) | The price sensitivity coefficient for the NEV |
\(\gamma\) | The cross-price sensitivity coefficient |
\(c_{i}\) | The initial unit production cost of the NEV, \(i=1, 2\) |
\(c_{0}\) | The marginal cost of production due to the energy efficiency level of the NEV |
k | Green innovation cost coefficient |
h | The price of an NEV unit credit |
\(\theta\) | The percentage an NEV that translates into a unit credit |
\(\rho\) | Discount factor |
