A Decision-Making System for Low Carbon Manufacturing

Abstract

Based on the stochastic market demand of products, this paper studies the low-carbon manufacturing decisions making of manufacturing enterprises considering downward substitution and green technology input under the carbon cap-and-trade policy. The results show that the government’s carbon trade policy will have a great impact on the production of manufacturing enterprises. Therefore, manufacturing enterprises must attach importance to the constraints of the government’s carbon emission reduction policies. In terms of it, there are strategies for manufacturing enterprises such as adjusting the output, trading the carbon emission right, and so on. On this case, green technology input can increase the expected profit of manufacturing enterprises, especially in the case of downward substitution.