Abstract
Cap-and-Trade mechanism has been implemented in many countries. To study the resource allocation problem with limited carbon emission, a stochastic dynamic programing model is proposed. The company produces two types of products to satisfy random demands with uncertain supply. One is normal product with higher revenue and emission, and the other is green product with lower revenue and emission. The optimal allocation policy is characterized, which is a target type with a threshold. The numerical example illustrate the analytical results and indicates that the cap-and-trade system as a market-based mechanism can induce the companies to produce green products.
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Acknowledgments
The work described in this paper was supported by Research Grant from the Natural Science Foundation of China (NSFC) under grant codes 71402102, 71472126, 71572114 and 71402101.
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Yang, W., Pan, Y., Chen, X. (2018). A Stochastic Programming Model for Resource Allocation with Uncertainties and Carbon Emission Constraints. In: Ahram, T., Karwowski, W. (eds) Advances in Human Factors, Software, and Systems Engineering. AHFE 2017. Advances in Intelligent Systems and Computing, vol 598. Springer, Cham. https://doi.org/10.1007/978-3-319-60011-6_9
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DOI: https://doi.org/10.1007/978-3-319-60011-6_9
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