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This paper focuses on the impact of ‘cap-and-trade’ mechanism and customer’s environmental awareness on emission-dependent manufacturer. Carbon emission cap from the perspective of government will be confirmed. In the ‘cap-and-trade’ system, emission permit becomes one of the key factors of production for emission-dependent firms. If the cap is insufficient to satisfy the target production, extra permit should be purchased via trading, otherwise, the remaining permit will be sold to other firms. Since the product demand has been influenced due to the consideration of customer environmental awareness, the production will be decided by analyzing the produced decision-making process of the emission-dependent firm in this case. Base on the consideration of improving environment benefits, carbon emission cap of this kind of manufacturer will be determined. Additionally, numerical analysis is considered. We found that it is profitable for the manufacturer investing; meanwhile, the emission intensity of this manufacturer is ameliorative. And emission reduction investment should be encouraged by the environmental administration in some way of preferential policy.

This paper studies the impact of emergencies on the supplier’s decision-making behaviors including production and information sharing in consideration of consumer risk perception, consumer loss aversion phenomenon, and government price control. The intensity of emergencies is sequential and emergencies can be divided into two types (positive or negative) according to their effect on demand. When emergencies have negative effect on demand, the supplier’s sales will reduce and he would share information to the market. When emergencies have positive effect on demand, we find that when the price is under price cap the supplier will not share information to the market; when the price reaches price cap, the supplier will share a certain amount of information to the market. We were surprised to find that increasing demand is not always good for the supplier when there exist government price control and lost sales penalty, and information helps the supplier to effectively manipulate demand.