Optimal Order Lot Sizing and Pricing with Carbon Trade
Beijing Jiaotong University - School of Managment and Economics
affiliation not provided to SSRN
School of Economics and Management, Beijing University of Chemical Technology
March 22, 2011
Carbon emission trading is one of the broadly adopted methods to curb the amount of carbon emission. This paper examines the optimal decisions of retailers under cap-and-trade. We derive the optimal order lot size and retail price under cap-and-trade when the demand is an additive function or multiplicative function of retail price, and analyze the impacts of carbon trade on the order decision, pricing decision, carbon emission and profit.
Number of Pages in PDF File: 4
Keywords: Carbon trade, EOQ model, pricing, carbon footprintsworking papers series
Date posted: March 27, 2011 ; Last revised: August 7, 2011
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