Abstract: Two-layer electric-coal supply chain (ECSC) consisting of one supplier and one manufacturer is studied. The carbon emission processes of the ECSC comprising of coal production, transportation and consumption are established using system dynamics model, and impacts of different carbon trading policies on profit and carbon emission of ECSC are analyzed. The ECSC of X Coal Industry and Y power plant in Shenhua Group is taken as case study, and the results show that:first, the average share of carbon emissions in production, transportation and consumption of ECSC is 12.1%, 39.6% and 48.3%, respectively; second, the higher the price of carbon trading, the larger negative impact on profit of ECSC, and the carbon reduction effect increased first and then decreased; third, with the decline in the proportion of free quotas, the profit of the ECSC is significantly reduced, while the emission reduction effect is slightly improved; finally, carbon trading subsidies could mitigate the decline in profit of ECSC, and could effectively enhance the emission reduction effect.

Key words: electric-coal supply chain, profit, carbon emission, carbon trading policy, system dynamics