Management Review ›› 2022, Vol. 34 ›› Issue (2): 303-314.

• Public Management • Previous Articles     Next Articles

The Optimal Decision-making of Monopoly Manufacturer under the Mixed Carbon Policy and Government Regulation Policy

Zhang Yuxiang1,2, Tan Deqing1   

  1. 1. School of Economics and Management, Southwest Jiaotong University, Chengdu 610031;
    2. College of Management Science, Chengdu University of Technology, Chengdu 610059
  • Received:2018-12-19 Online:2022-02-28 Published:2022-03-24

Abstract: Most carbon policies focus on the carbon emission in the production process. In practice, more carbon emissions come from the consumption process of many durable goods. It is imperative to curb carbon emissions in the consumption process. Based on this, an exploratory proposal is made to implement the "carbon trade - carbon tax" mixed carbon policy. From the perspective of consumer utility, this paper builds a durables monopoly’s leasing and selling decision model featured with carbon emissions in both production and consumption process, examines the impact of the carbon trading price and the carbon tax rate on the monopoly’s marketing strategy and carbon reduction strategy and discusses how to effectively curb carbon emissions via carbon policy. The results show that: without the carbon tax or loose carbon tax policy, carbon trading price cannot change the status quo of manufacturers' choice of leasing strategy; Given the tightening carbon tax policy, the selling strategy is better when the carbon trading price is lower; The leasing strategy is better when the carbon trading price is higher; The carbon trading price and the carbon tax rate affect the introduction of the emission reduction technology and its effect. The higher the carbon trading price, the weaker the emission reduction effect; No matter which marketing strategy is chosen by the monopoly, the government can curb the emission through adjusting the carbon trading price and carbon tax rate.

Key words: mixed carbon policy, durable goods, enterprise decision, regulation policy