The Comparative Analysis between Two Emission Abatements Considering Green Premium

An emission-dependent manufacturer considers two types of carbon emission abatement under the cap-and-trade mechanism. They are the "end-of-pipe technology" and the "clean technology". By constructing a parametric model,this paper shows the difference between those two emission abatements about the analysis approach and decision-making results. In addition,though the emergence of green premium from green consumers in the market can decrease the cost of emission reduction in some way,if the emission-dependent manufacturer choose the "clean technology",he need to be cautious when make decision. Only a far-sighted mission-dependent manufacturer can grasp the opportunity from green market to make the optimal decision and to get maximum benefit. Finally,for the government,on the one hand,it can guide the emission-dependent manufacturer to explore its own optimal emission abatement through regulate the carbon price,on the other hand,it can enhance the mission reduction enthusiasm of the emission-dependent manufacturer by increasing consumers' low-carbon awareness.