Abstract
To investigate the effects of carbon cap-and-trade regulation on firm's production and low-carbon technology investment decisions, we firstly introduced a model for production decision without considering carbon cap-and-trade regulation as a benchmark. Under cap-and-trade regulation, we established the model for production decision and the model for joint decisions on production and low-carbon technology investment, then discussed the impacts of the carbon emissions quota and carbon trading price on firm' production quantity and carbon emissions as well as profits, and compared the optimal production quantity, total carbon emissions, and profit. Finally, the relevant propositions and corollaries were verified and analyzed by numerical examples, some management Implications for the firm making decisions on production and low-carbon technology investment and for the governments operating effectively the carbon cap-and-trade regulation were proposed.
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