Manufacturer’s Low-carbon Technology Choice With The Carbon Cap-and-trade System And Low-carbon Awareness Of Consumers

A large amount of governments have formulated low-carbon polices with developing a carbon emission reduction as a main goal faced with environmental issue of global warming, moreover, the bodies of supply chain have transformed themselves’ behaviors under driven by low-carbon policies. The manufacturer will choose lowcarbon technology to reduce emissions of carbon in production process under pressure of carbon cap-and-trade policy, the consumer will enhance low-carbon awareness and increase preference on low-carbon product under publicity of low-carbon polices.The joint impact of carbon cap-and-trade system and consumers’ low-carbon awareness on low-carbon strategies of manufacturers has been considered rarely in the current study of supply chain. Based on this, the paper mainly uses mathematical economic models and operations research and game theory to study the government how to guide manufacturer to choose low-carbon technology with considering the carbon cap-and-trade market and low-carbon awareness of consumers under low-carbon supply chain.Firstly, the equilibrium solutions of prices, the quantity of products and profits were obtained, and the conditions of the cap-and-trade market price were obtained when the manufacturer choose low-carbon technology after studying how the price of carbon emission permits in the market affects the low-carbon technology choice of manufacturer. The main results show that manufacturer will not choose the low-carbon technology when the price of carbon emission permits is too low or too high; manufacturer will choose the low-carbon technology when the price of carbon emission permits located in a relative stable and reasonable range. The research results also find that the optimal price of manufacturer drops with the low-carbon awareness of consumer increasing, the optimal production increases with the low-carbon awareness of consumer increasing, the optimal profit decreases with the low-carbon awareness of consumer increasing. And the addition of consumer’s low-carbon awareness extends the price range of carbon emission permits when manufacturer chooses the low-carbon technology.Secondly, this paper explained the conditions of low-carbon policies when the government need to set the lowest price of permits in social welfare after studying how low-carbon policies influences on manufacturer. The primary results illustrate that the government needs to set the lowest price of permits to guarantee the stability of carbon market when the subsidy of low-carbon technology is high; the government needs to set the lowest price of permits to add pressure of carbon emissions on manufacturer when the subsidy of low-carbon technology is low but the cap of carbon emissions is enough and the degree of environmental damage through carbon emission is serious; the government does not needs to set the lowest price of permits when the subsidy of lowcarbon technology is low and the cap of carbon emissions is not enough and the degree of environmental damage through carbon emission is not serious.