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Hoteling Price Competition Model Under the Carbon Emissions Constraints

In: Ltlgb 2012

Author

Listed:
  • Bin Zhang

    (Beijing Jiaotong University)

  • Wenliang Bian

    (Beijing Jiaotong University)

Abstract

Nowadays, industry development with low-carbon has become a trend. How a energy-intensive company can get an advantages to adapt to the requirements of the carbon emissions policy? Because of the ignoring the carbon emissions factors, the original Hoteling model does not apply to the new circumstance easily. In order to provide a reference to the management of energy-intensive industries under this new challenge, we add the carbon emissions constraints to the Hoteling model in this paper. We confirm that the unit cost of carbon and carbon emissions quotas are directly related to the profits of enterprises. For the enterprise, one of the best way to increase the profit is to decrease the unit cost of carbon emissions of enterprises with advanced low-carbon technologies in the production process and to gain more carbon emission quotas rationally.

Suggested Citation

  • Bin Zhang & Wenliang Bian, 2013. "Hoteling Price Competition Model Under the Carbon Emissions Constraints," Springer Books, in: Feng Chen & Yisheng Liu & Guowei Hua (ed.), Ltlgb 2012, edition 127, chapter 0, pages 707-712, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-34651-4_96
    DOI: 10.1007/978-3-642-34651-4_96
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