An optimal electricity consumption decision with a limited carbon emission concept

Abstract

This paper aims to explore the strategy of electricity-using industries' optimal electricity selection by using the binomial option pricing model to analyze the values of various stages in the process. Due to variable electricity using and the worldwide regulation of carbon emissions, this paper tries to investigate the hedge behavior of conservative and adventure energy-using industries' carbon emission strategy and build a maximum financial model for decision-making and the flexible approach of strategy management. How to provide the policymakers of enterprises with a reference of planning the optimal electricity consumption in every decision-making time is the most important. This paper contributes to increase the eco-economic value of enterprises under the restriction of carbon emissions.