Dynamic Optimal Production Strategies Based on the Inventory-Dependent Demand under the Cap-and-Trade Mechanism

Table 1

The impact of and on the “max-mid” and “mid-0” switching timing.

Conditions	Effects on 𝑡2
ℎ−𝛿𝑝+𝛽𝑝C>0 and ℎ−𝛿𝑝>0	increases 𝑝C or 𝑝
or ℎ−𝛿𝑝<0	decreases when 𝑝C increases
ℎ−𝛿𝑝+𝛽𝑝C<−𝛼𝛿𝑝C	and increases with 𝑝
Conditions	Effects on 𝑡3
ℎ−𝛿𝑝+𝛽𝑝C>0 and 𝛼ℎ−𝛼𝛿𝑝−2𝛽𝜃𝑟max>0	increases 𝑝C or 𝑝
or 𝛼ℎ−𝛼𝛿𝑝−2𝛽𝜃𝑟max<0	decreases when 𝑝C increases
ℎ−𝛿𝑝+𝛽𝑝C<−𝛼𝛿𝑝−2𝛽𝜃𝑟max	and increases with 𝑝