Abstract
In this paper we investigate the optimal production policy of complete monopoly firm, establish and solve the model with and without Carbon Emissions Trading. We obtain the optimal production and maximum profit in different cases. The results show that when carbon emission quotas distributed by the government are greater than the firm's needs, firm's optimal production is not affected, and the maximum profit with Carbon Emissions Trading is bigger than the case without Carbon Emissions Trading; when carbon emission quotas distributed by the government are less than the firm's needs, the optimal production and maximum profit with Carbon Emissions Trading are both greater than the case without Carbon Emissions Trading. So the Carbon Emission Trading creates a new profit space for the firms.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
