It is widely believed that an environmental tax (price regulation) and cap-and-trade (quantity regulation) are equally efficient in controlling pollution when there is no uncertainty. We show that this is not the case if some consumers (firms, local governments) are morally concerned about...

It is widely believed that an environmental tax (price regulation) and cap-and-trade (quantity regulation) are equally efficient in controlling pollution when there is no uncertainty. We show that this is not the case if some consumers (firms, local governments) are morally concerned about...

This paper develops price and low-carbon competition models between one socially responsible manufacturer (RM) and one ordinary manufacturer (OM). We investigate how manufacturers' low-carbon behaviors are affected by factors such as consumers' low-carbon preference, the cap-and-trade regulation...