Abstract: In order to compare and analyze the effects of CCER offset, different offset bases and offset ratios on carbon abatement and price decisions of supply chain, this paper takes a two-level supply chain which consists of a manufacture and a retailer as the research object, and regards the best decisions under the constraint of the Emissions Trading Scheme as benchmark. The results are as follows: (1) the allowance-based CCER offset can not only reduce carbon emissions intensity, wholesale price and retail price, but also improve profit of each supply chain member, but not always reduce total carbon emissions; (2) only when the market scale is small and emissions abatement difficulty is great, can carbon emissions intensity be reduced under the emissions-based CCER offset, but the manufacture’s profit and total carbon emissions are always improved, and the retail price present the same changing trend as wholesale price; (3) if the CCER offset can reduce carbon emissions intensity, the descent degree is the subtracting function of CCER price as well as the increasing function of the upper limit of CCER offset ratio; if not, the lower the CCER price is, the larger is the ascent degree; and the higher the CCER offset ratio is, the larger is the ascent degree. The effects of CCER price and CCER offset ratio on wholesale price, retail price and profit of each supply chain member is in the same way.

Key words: carbon trading, the CCER offset, supply chain, carbon abatement, pricing