Abstract: Environmental protection issues are getting a shift of focus with economics development. In this article, the impact of different emission policies on the logistics and distribution modes in supply chain is studied by constructing distribution centers location model with hierarchical capacities under different carbon emission policies. Then the data from OR lab and Carbon Trust is used to study the effect of four carbon emission polices on logistics model, operational cost and carbon emission. It is found that the dimension of facilities is small-scale and relatively scattered under high emission cap while it is large-scale and relatively centralized under low emission cap. Furthermore, the government can restrain the emission of corporations by implementing appropriate strategies. Finally, it is also suggested that companies have more incentive to reduce carbon emission under carbon trade mechanism among these policies, and they are most likely to accept the carbon trade mechanism.

Key words: location model, carbon emission policies, carbon trade mechanism, emission reduction