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Optimal Order Lot Sizing and Pricing with Carbon Trade


Guowei Hua


Beijing Jiaotong University - School of Managment and Economics

Han Qiao


affiliation not provided to SSRN

Li Jian


School of Economics and Management, Beijing University of Chemical Technology
March 22, 2011


Abstract:     
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 footprints

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Date posted: March 27, 2011 ; Last revised: August 7, 2011

Suggested Citation

Hua, Guowei, Qiao, Han and Jian, Li, Optimal Order Lot Sizing and Pricing with Carbon Trade (March 22, 2011). Available at SSRN: http://ssrn.com/abstract=1796507 or http://dx.doi.org/10.2139/ssrn.1796507

Contact Information

Guowei Hua (Contact Author)
Beijing Jiaotong University - School of Managment and Economics ( email )
3#, shangyuancun, Beijing City
Beijing, 100044, P.R., Beijing 100044
China
Han Qiao
affiliation not provided to SSRN
Li Jian
School of Economics and Management, Beijing University of Chemical Technology ( email )
School of Economics and Management, Beijing Univer
Beijing, 100029
China
Feedback to SSRN (Beta)


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