Research on Company Strategy Under Green Technology Investment in the ‘cap-and-trade’ System



In this paper, we will analyze the firm’s strategies (production strategy, carbon trading strategy and green technology investment). In the 'cap-and-trade' system, we take green technology investment into account. We draw the conclusion that the firm may carry out the green technology investment in the 'cap-and-trade' system, and it has the optimal amount of green technology investment, as well as the maximum expected profit and it’s carbon emissions. It proven that the 'cap-and-trade' system can encourage the firms to invest the green technology thus reducing carbon emissions. Additionally, the higher the carbon price is the higher the unit emission reduction rate is, and the higher the unit emission reduction rate is, the fewer the products are made. What’s more, the total profit is proportional to the carbon emission caps. Finally, we do the sensitivity analysis, and discuss the impact of parameters’ changes on production, green technology investment and carbon emissions.
Key words: Cap-and-trade; Emission cap; Strategy; Green technology investment


Cap-and-trade; Emission cap; Strategy; Green technology investment

Full Text:




  • There are currently no refbacks.


How to do online submission to another Journal?

If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.

We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:;;

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures
Address: 9375 Rue de Roissy Brossard, Québec, J4X 3A1, Canada

Telephone: 1-514-558 6138