Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap-and-Trade Regulation
In literature, the firm’s selection of dual-product strategy under cap-and-trade regulation and the optimal emission reduction decisions are not well studied, especially through an analytical approach. We develop a theoretic model to investigate the firm’s selection on three product strategies in th...
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| Format: | Article |
| Language: | English |
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Wiley
2022-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2022/8602997 |
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| _version_ | 1849690392325259264 |
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| author | Xuzhao Li Yao Tang Yu Tang |
| author_facet | Xuzhao Li Yao Tang Yu Tang |
| author_sort | Xuzhao Li |
| collection | DOAJ |
| description | In literature, the firm’s selection of dual-product strategy under cap-and-trade regulation and the optimal emission reduction decisions are not well studied, especially through an analytical approach. We develop a theoretic model to investigate the firm’s selection on three product strategies in the presence of cap-and-trade policy, including two single product strategies and a dual-product strategy, and identify two types of consumers: consumers with low-carbon preference and regular consumers. Our analysis shows that, (i) in the absence of cap-and-trade policy, it is optimal to adopt dual-product strategy, but in the presence of this policy, it is optimal to adopt dual-product strategy or low-carbon product strategy. (ii) Compared with ordinary product strategy, adopting a low-carbon product strategy or dual-product strategy benefits the firm under cap-and-trade regulation. (iii) The additional cost of producing low-carbon product has an impact on the firm’s product strategy selection under cap-and-trade regulation. When it falls below a certain threshold, it is optimal to adopt a dual-product strategy; otherwise, it is optimal to adopt a low-carbon product strategy. Our research can provide reference for firm’s decision-making and government’s policy formulation. |
| format | Article |
| id | doaj-art-eff2b6531fbc4507bad94f7fea028502 |
| institution | DOAJ |
| issn | 1099-0526 |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-eff2b6531fbc4507bad94f7fea0285022025-08-20T03:21:19ZengWileyComplexity1099-05262022-01-01202210.1155/2022/8602997Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap-and-Trade RegulationXuzhao Li0Yao Tang1Yu Tang2Business SchoolBusiness SchoolBusiness SchoolIn literature, the firm’s selection of dual-product strategy under cap-and-trade regulation and the optimal emission reduction decisions are not well studied, especially through an analytical approach. We develop a theoretic model to investigate the firm’s selection on three product strategies in the presence of cap-and-trade policy, including two single product strategies and a dual-product strategy, and identify two types of consumers: consumers with low-carbon preference and regular consumers. Our analysis shows that, (i) in the absence of cap-and-trade policy, it is optimal to adopt dual-product strategy, but in the presence of this policy, it is optimal to adopt dual-product strategy or low-carbon product strategy. (ii) Compared with ordinary product strategy, adopting a low-carbon product strategy or dual-product strategy benefits the firm under cap-and-trade regulation. (iii) The additional cost of producing low-carbon product has an impact on the firm’s product strategy selection under cap-and-trade regulation. When it falls below a certain threshold, it is optimal to adopt a dual-product strategy; otherwise, it is optimal to adopt a low-carbon product strategy. Our research can provide reference for firm’s decision-making and government’s policy formulation.http://dx.doi.org/10.1155/2022/8602997 |
| spellingShingle | Xuzhao Li Yao Tang Yu Tang Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap-and-Trade Regulation Complexity |
| title | Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap-and-Trade Regulation |
| title_full | Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap-and-Trade Regulation |
| title_fullStr | Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap-and-Trade Regulation |
| title_full_unstemmed | Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap-and-Trade Regulation |
| title_short | Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap-and-Trade Regulation |
| title_sort | production strategy selection and carbon emission reduction with consumer heterogeneity under cap and trade regulation |
| url | http://dx.doi.org/10.1155/2022/8602997 |
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