Optimizing Investments in Environmental Technologies Under Government Subsidy Uncertainty

This study develops a mĩed-integer second-order cone programming (MISOCP) framework for optimizig corporate investments in environmental technologies under uncertainty in government subsidies. The model integrates project selection, internal capital allocation, technical investment thresholds, and chance-constrained public funding limits. Assuming independent normally distributed subsidy ratios, the probabilistic funding constraint is reformulated into a deterministic second-order cone representation. An illustrative three-project scenario involving emission control, wastewater recycling, and solar installation examines the implications of risk aversion for investment allocation.