Production Strategy and Technology Innovation under Different Carbon Emission Polices

Given that the production process in manufacturing industry is a significant contributor to carbon emissions, many governments have implemented emission-related policies incentivize manufacturers optimize their or invest green technology, with aim of reducing footprint. Therefore, it necessary determine effectiveness considering always tend prioritize economic profits actual operations. We compare effects three different emission policies—carbon tax, cap-and-trade, and intensity target—on manufacturers’ strategies technology innovation investments, which include quantities, price goods permit, technological improvement abatement. The study results show target policy increases market decreases rate. For higher (lower) initial intensity, induces them decrease (increase) quantities quantities. choice, cap-and-trade more incentive on for lower abatement level intensity.