The competition between green and non-green product types in various industries is evolving with respect to the development of new technologies and governmental interventions. In fact, many environmental innovations in product developments and production processes have occurred because of government regulations or consumer demand (Hafezalkotob, 2017a; Howes et al., 2013). For example, the widespread use and support of green technologies in residential construction are outcomes of resident behavior, governmental policies, and climate change (Si et al., 2016). In response to the devastating effects of global warming, climate change, and pollution  on humans, animals, and the environment (IEA, 2011), significant political and legislative initiatives have recently been undertaken. As a notable example, the Paris climate conference (December 2015) resulted in an important inter-governmental agreement that incorporated commitments on emissions, adaptation, finance, and transparency as well as practical steps to increase carbon trading1 . The signatory governments (and governmental institutions) are obligated to provide legislative incentives (in terms of financial or legislative aid) or/and technical consultants to support and expand green products and technologies in different industries. For instance, in response to the acute environmental concerns of the Swedish population, Swedish policy makers passed legislation on road transportation to support eco (e.g., hybrid or electric) vehicles (Huse and Lucinda, 2014). In fact, the Swedish  government established a green car rebate policy that offers approximately $1500 to all  private individuals purchasing an eco-automobile (Huse and Lucinda, 2014). The US and  Canadian governments have implemented similar policies to support hybrid or electric  automobiles (Beresteanu and Li, 2011; Chandra et al., 2010). To pursue financial, social and environmental objectives, the governments often devise  different policy instruments which are generally categorized as price-based (e.g., tax and subsidy schemas) and quantity-based instruments (e.g., cap-and-trade and tradable permit schemas) (Hepburn, 2006). In the price-based schemas, the governments financially intervene in the market to pursue specific policy objectives. For example, taxing tobacco results in increased cigarette prices and hence reduced consumption. ‘Direct Tariff (DT) schema’ is a tax levied or subsidy provided by a government for products that are available in the market. DT schema is the most important price-based instrument to expand green product. The quantity-based schemas are indeed command-and-control regulations on quantities such as placing an upper limit on the hazardous waste or pollutant of the products (Hepburn, 2006). ‘Tradable permits (TP) schema’ is a hybrid instrument in which polluters must legallypurchase the permits from the permit owners, usually the green producers. In fact, TPs are tradable certificates granted to the green producers to compensate for the additional costs of  the green production. Non-green producers are obligated to purchase TPs in a secondary market.