Carbon sensitive manufacturers' production strategy research with carbon emissions capacity policy

Abstract

This paper researches carbon sensitive product manufacturers' production strategy with carbon emissions capacity (Cap) policy, when manufacturers under deterministic demand and stochastic demand. The research shows: Cap policy regulations have influence on manufacturers' production and profits, and it's less than without Cap policy regulations. When production under no Cap policy regulations. With carbon sensitive coefficient increasing, manufacturers' profits decrease. When production under Cap policy regulations, with carbon sensitive coefficient increasing, manufacturers' profit increases by deterministic demand; manufacturers' profit decreases by stochastic demand.