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Chinese Journal of Management Science ›› 2014, Vol. 22 ›› Issue (9): 141-148.

• Articles • Previous Articles    

Supplementary Study on “Optimal Production Policy with Emission Permits and Trading”

CHEN Bo-cheng1, LI Ying-jie2   

  1. 1. Graduate School at Shenzhen, Tsinghua University, Shenzhen 518055, China;
    2. Institute of Microelectronics of Chinese Academy of Sciences, Beijing 100029, China
  • Received:2014-10-28 Revised:2013-07-01 Online:2014-09-20 Published:2014-09-27

Abstract: In our country, the problem of emissions permit trading (cap-and-trade) is already put on the agenda and Shenzhen city already becomes the first official run mandatory carbon market in China. But named as the "world factory" China, there is little research on the direction of the emissions trading and production optimization combined. The literature 1, with its unique model and analysis, is the only paper published in the mainland in the direction of considering emissions permit trading condition in the production optimization research. Literature 2-3 are their research extending.Model and analysis proposed in literature 1 rather special, and there seems some of its work can still do further analysis. In the paper, based on results in literature, some supplementary improvements and the corresponding analysis are given, such as the optimal revenue results simplifying, a new result deriving, relevant results analyzing and comparing, as well as sensitivity and qualitative analyzing and so on. The new result can not only reflect more about the relation between the optimal purification level, optimal quantity and optimal revenue, but also can more intuitively show the given emission cap/quota character at the optimal revenue expression in their original study. Based on the results, more corresponding analysis is given, and the analysis results also reveal the hidden trouble in the "the Government Cap" given. Results in the paper can also be promoted into its multi-phase production optimization analysis.

Key words: emission permit s and trading, emission reduction, purifying, production policy

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