Cataloged from PDF version of article.Carbon emission regulation policies have emerged as mechanisms to control firms’ carbon emissions. To meet regulatory
requirements, firms can make changes in their production planning decisions or invest in green technologies. In this study,
we analyse a retailer’s joint decisions on inventory replenishment and carbon emission reduction investment under three
carbon emission regulation policies. Particularly, we extend the economic order quantity model to consider carbon emissions
reduction investment availability under carbon cap, tax and cap-and-trade policies. We analytically show that carbon emission
reduction investment opportunities, additional to reducing emissions as per regulations, further reduce carbon emissions while
reducing costs. We also provide an analytical comparison between various investment opportunities and compare different
carbon emission regulation policies in terms of costs and emissions. We document the results of a numerical study to further
illustrate the effects of investment availability and regulation parameters