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This paper studies the production and pricing problems in MTO (make-to-order) supply chain containing an upstream manufacturer who produces two products based on MTO production and a downstream retailer. The manufacturer is regulated by cap-and-trade regulation and determines the wholesale prices of the two products. To comply with the regulation, the manufacturer can buy or sell emission permits...
Cap-and-trade and carbon tax regulations are the two main low-carbon policies to curb carbon emissions. This paper studies the joint production and pricing problem of a manufacturing firm with multiple products under cap-and-trade and carbon tax regulations, and compares the effects of the two regulations on the total carbon emissions, the firm's profit and social welfare. The firm faces price-sensitive...
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