1. The carbon cap is like a piece of cake allocated to the firm for compensating its emission charges, which has no effect to its emission abatement nor pricing decisions.2. A firm’s carbon emission reduction effort is always enhanced by carbon price and consumer low-carbon awareness, while decreased by abatement cost coefficient and consumer’s sensitivity toward product price.3. The optimal pricing strategy for a firm is to pass part of its carbon emission cost as well as abatement cost to its consumers, while drops to some certain extent according to the level of consumer low-carbon awareness and price sensitivity for compensating consumers’ aversion toward carbon emissions.4. The firm’s equilibrium payoff drops first and then recovers with the increase of carbon price, and keeps going down with the increase of consumer low-carbon awareness.5. Generally, it is easier to induce emission abatement behavior for a firm with lower marginal emission abatement cost, or with less price sensitive consumers.
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