Impact of a Carbon Tax on Energy Transition in a Deregulated Market: A Game-Based Experimental Approach

Energy companies in a competitive market face dilemma between the short-term revenue benefits of using fossil fuels and long-term investing renewables. This is caused by uncertainties price competition, return on investment renewables, fuels. study experimentally investigated whether carbon tax contributes to overcoming this conflict an online multi-player game. The participants played role energy that produce from either or game was seven times each, with without taxation In with-tax condition, rate timing were informed at beginning game, imposed late gameplay results showed renewables increased actual but not information advance. answers in- post-game questionnaires indicated did reduce player anxiety about future uncertainties. These suggest importance considering effects policies perceptions behaviors players.