Consumer Utility Function Analysis of Low Carbon Products

Abstract

Low carbon economy is gradually achieving global consensus by increasing number of countries. It is the basic way to address climate change and coordinate socio-economic development. The low carbon road with Chinese characteristic is the hotspot of academic research and it is a great challenge too. But few scholars did researches in low-carbon economy development from consumer preference. This paper analyzed the dual utility structure characteristic of low-carbon products from the perspective of low carbon products preference. According to consumer behavior theory, it concludes consumers have ultra-satisfaction consumption preference towards low-carbon products. The utility function has a positive real root which is not one. The paper hopes to provide the theoretical basis for analyzing market demand of low-carbon economy with the model.