Carbon sensitive manufacturers´ production strategy research with carbon emissions capacity policy

This paper researches carbon sensitive product manufacturers´ production strategy with carbon emissions capacity (Cap) policy, when manufacturers under deterministic demand and stochastic demand. The research shows: Cap policy regulations have influence on manufacturers´ production and profits, and it´s less than without Cap policy regulations. When production under no Cap policy regulations. With carbon sensitive coefficient increasing, manufacturers´ profits decrease. When production under Cap policy regulations, with carbon sensitive coefficient increasing, manufacturers´ profit increases by deterministic demand; manufacturers´ profit decreases by stochastic demand.