The Impact of Consumer Utility on Duopoly Competition Markets Decision-Making Under Constraints of Carbon Cap Policies

This study analyses the optimal pricing and competition decisions in a duopoly market under carbon emission cap policies, based on the carbon emission-dependent markets of traditional energy, electricity, oil, and chemicals.It validates the research findings through numerical analysis and confirms the proposed theoretical propositions.This study verifies the relevant conclusions through numerical analysis.First, the research results indicate that, in the context of consumer utility and under the constraints of carbon emission cap policies in a competitive market, there exists an equilibrium solution for the pricing and output decisions of two oligopolists.Second, under the constraints of carbon emission limits, the optimal market price of products is influenced by production capacity, carbon emissions per unit of product, consumer preferences, and preference costs.Third, under the constraints of carbon emission limits, as the carbon emissions per unit of product decrease and production capacity increases, the market price of the product declines.Finally, under the condition of fixed production capacity, the higher the consumer preference for low-carbon Vol.58, Issue 3/2024 products, the higher the market price; conversely, the lower the preference cost, the lower the market price.