Manufacture’s Optimal Pricing Policy and Retailer’s Optimal Ordering Policy Under Different Carbon Emission Policies

Abstract

The implementation of carbon reduction policy is an important method for the firms to reduce carbon emissions. So it is of great significance to research on the firms’s trategies under different carbon reduction policies. In this paper, we study the manufacturer’s wholesale price strategy and the retailer’s ordering strategy, as well as carbon emissions policy’s impact on the production and profit, under mandatory carbon emissions capacity policy, carbon emissions tax policy and cap-and-trade policy respectively. In addition, the government’s decision-making about carbon emissions policy parameters is also discussed. The conclusion builds a microeconomic foundation for the carbon emissions policy’s design and development, and also verified the policy’s effectiveness and scientificity, at last achieved the “win-win” ofthe government and enterprises.