The price game research under low-carbon policies regulation in duopoly market

Abstract

This paper studies the price game under low-carbon policies regulation in duopoly market, on condition of complete information. The results show that: Bertrand equilibrium of duopoly market will be influenced by the low-carbon policies. In detail, Bertrand equilibrium breaks under each policy's regulation; and the optimal pricing under policy's regulation are higher than those without regulation; further research indicates that, in three policies, it is the cap-and-trade policy that makes the enterprises' expect profit increase, in the meanwhile, makes the carbon emission reduce.