Dual-mode Production Optimization For Manufacturing With Emission Constraints Considering Capacity Constraints

With the increasing of global greenhouse gases by human social activities,the atmospheric ecological environment has been seriously damaged,and human beings are facing the threat of natural adverse weather events.Current international community,governments,enterprises and scholars are focusing more on the development of low-carbon economy to encourage improve low-carbon system and reduce carbon.As the largest developing country,China has adopted policies to promote the reduction of carbon emissions during the “Twelfth Five-Year Plan” and “the thirteenth Five-Year Plan” period to achieve emission reduction targets formulated by China.The two most widely used policy instruments are carbon cap-and-trade policy.Under the pressure of the policy,Many carbon-dependent manufacturers need to shift their "high-carbon" conventional production models to cleaner,low-carbon production models.However,by analyzing the existing domestic and foreign studies,it is found that the research on the enterprise output decision of assembling the original common production technology and low carbon production technology at the same time is not comprehensive enough.At present,there is no clear conclusion on the production,profit and social welfare of low-carbon products and ordinary products brought about by carbon policy.In addition,under the carbon policy,there are few researches on how to choose the production mode and the carbon trading behavior according to the current production cost.Based on this,this paper analyzes the production decision of enterprises under carbon quota control policy and carbon quota trading policy.This paper first discusses the optimal decision of the manufacturer without emission reduction before the government regulation,and then analyzes the optimal decision after the implementation of emission-cap regulation policy.Under the regulation,carbon emission-dependent manufacturers adopt the regular technology and low-carbon technology to produce the same product.a contrastive analysis of optimal decision of manufacturers before and after emission reduction with social welfare,it can be found that although carbon cap-and-control policy could help to improve economic benefits,it will have a negative influence on reduced on the manufacturer's profit and production and lead to the society wealth loss.Furthermore,this paper discusses the situation under the government subsidizing manufacturers after implementing the emission-cap regulation.The results suggest that subsidy will bring Pareto improvement for all stakeholders.And if subsidy for units of low-carbon product is higher than the producers' reduction cost of unit of low carbon product,then social welfare and producer profits and production can be improved compared to those before the implementation of emission-cap regulation policy.Considering the carbon emission cap-and-trade scheme,through formulating a simple supply chain consisting of a manufacturer and a customer,we analyze the optimal production and carbon trading decision of manufacturing enterprises under two different capacity constraints and three different production models.The results indicate that: there exists cost critical curve in the case of dual-mode production.The increase of carbon emission cap and carbon emission reduction of unit product both have positive influence on manufacture's profit but increase of carbon emission cap of unit product makes the total carbon emission increase,increasing carbon emission reduction of unit product makes total emission decline.The increase of carbon emission cap of unit product makes the production scale of low carbon product and ordinary product expand at the same time,and the increase of carbon abatement only increases the output of low carbon product and reduces the output of ordinary product.Under the three production modes,the impact of carbon trading price on the profits of enterprises is different.In the low carbon production mode,the impact of carbon trading prices on corporate profits is only from the carbon trading market.Finally,numerical simulation is used to verify the validity of the research results.On the basis of the previous research on the production decision of low carbon policy,this paper further considers the constraints of production capacity,increases the analysis of the decision making of production technology selection,and supplements and expands the theoretical research.The research content has theoretical value,and the optimal production decision and carbon trading threshold of the enterprise solved in this paper have practical and instructive significance for the enterprise production decision.This paper also discusses the effects of several different policies and measures of government subsidies on the optimal production decisions and social welfare of enterprises before and after the implementation of the carbon cap-and-control policy.The research results have certain reference value to the government policy choice implementation.