Abstract:Based on manufacturer-led and consumer low-carbon preference, carbon tax and cap-and-trade models were built respectively to study appropriate production, pricing and carbon emissions reduction to maximize the manufacturer's profit, and the relationship of the manufacturer's profit changing with various policy variables under different carbon policies is the focus of research. First of all, consumer preference makes it advantageous for manufacturer to reduce carbon emission, and it is found that when carbon tax or carbon price is within the threshold value, there is an optimal carbon emission that maximizes the profit of manufacturer. Interestingly, the optimal carbon emission value is not related to the carbon quota. Secondly, the profit of manufacturer is inversely proportional to the carbon tax in the carbon tax model. However, in the carbon trading model, it is a little bit complicated, which is determined by the carbon price and the relative value of the carbon emission and carbon quota. And when a carbon tax equals a carbon price, cap-and-trade policy demonstrates a better fit to manufacturer. Finally, the conclusion is verified by numerical analysis.