Effects Of Carbon Reduction Policies On The Behavior Of Firm's Production-Abatement Under Learning By Doing

With the increase of greenhouse gas,the global and Chinese climate change issues,which are marked by warming,are highlighted.China,as the biggest emitter,faces enormous pressure to reduce emissions.In order to achieve the emission reduction target before 2020 and realize the harmonious development between the economy and the environment,the government must decompose it into the firms and draw up the carbon emission reduction target for the type of firms which are dependent on carbon emission.However,when the firms subject to the constraints of carbon reduction policies,learning by doing,as a process of accumulative experience with abatement cost and low-carbon emissions,is one of the most important ways to promote the firms to change the way of production–abatement and help firms achieve a good image of low-carbon operation,and further promote the implementation of carbon emission policies.Based on the economic efficiency of microeconomics,focusing on maximizing the profit of firm's production-abatement,we discuss about the effects of carbon abatement policies on firm's behavior of production-abatement,and study the differences and similarities of the effects of learning by doing on firms' production-abatement behavior under different carbon abatement policies.Firstly,by extending the existing modeling method of production-abatement,we respectively establish a basic and extended model of production-abatement under the policies of carbon tax and emission permit banking.Secondly,we applied optimal control method to respectively solve the models,and then get the optimal output and emission reduction.Through further analysis and theoretical calculation about the optimal strategy,we analyze the effects of carbon tax,carbon quotas and learning by doing on the behavior of firm's production-abatement.Finally,we compare the effects of carbon emission reduction policies,studying how learning by doing affects the behavior of firm's production-abatement under different carbon emission reduction policies,and then give the firm emission reduction management insights from learning by doing.