Emission-dependent Production Optimization Considering Government Subsidies

The government pursues economic growth as well as environmental protection. In order to study the impact of government subsidies on emission-dependent production optimization and the environmental performance,we constructed the government's subsidy function. The results showed that:(1)the emission-dependent manufacturer will update the way of obtaining emission permits(government quota,purifying and emission permits market)according to the condition of subsidies;(2)the environment performance has improved significantly,and the effect is closely related to the subsidy parameters. Finally,a typical numerical example is adopted to demonstrate the application of this model.