Optimal Choice of Enterprise’s Production Strategy under Constraints of Carbon Quota
- DOI
- 10.2991/ijcis.11.1.94How to use a DOI?
- Keywords
- carbon quota; carbon trading; production strategy; neural network optimization theory; pure strategy equilibrium
- Abstract
After analyzing the enterprise’s production strategy under the constraints of carbon quota, this paper proposes new mathematical models aiming for the optimal choice of enterprise’s production strategy under the monopoly and competitive environments respectively. Combining the neural network optimization theory, then the methods of Nonlinear Programming and Nash Equilibrium in Static Games are used to solve the models to obtain the enterprise’s equilibrium quantity, the optimal carbon emission, and the profit of unit product in the low carbon technology. The study found that: under a monopoly environment, enterprises choose technology innovation strategy; under a competitive environment, enterprises use carbon trading strategies whenever carbon trading prices are low or high; however, there is no pure strategy Nash equilibrium when carbon trading prices are in the middle, in this case enterprises prefer to use the production strategies different from the competitor.
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).
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TY - JOUR AU - Xiping Zheng AU - Qiang Guo AU - Zenglu Li AU - Ting Zhang PY - 2018 DA - 2018/07/11 TI - Optimal Choice of Enterprise’s Production Strategy under Constraints of Carbon Quota JO - International Journal of Computational Intelligence Systems SP - 1268 EP - 1277 VL - 11 IS - 1 SN - 1875-6883 UR - https://doi.org/10.2991/ijcis.11.1.94 DO - 10.2991/ijcis.11.1.94 ID - Zheng2018 ER -