Beschreibung:
This paper considers a risk-averse manufacturer who invests in the sustainability technology to reduce carbon emissions under a cap-and-trade policy. We first model a stochastic demand as a linear function of the sales price and sustainability level. In the framework of the newsvendor model, we use a mean-variance approach to measure the objective of the risk-averse manufacturer. By analyzing serval optimal properties of the joint operational decisions, we provide the closed-form solutions of the sales price and sustainability technology level. We further conduct numerical study to illustrate the theoretical results and investigate the impacts of risk-averse degree on the model