Abstract:Based on the carbon cap-and-trade regulation, the paper studies the production and emission reduction investment decisions of the remanufacturing enterprise. In the context of the carbon trading environment, the paper firstly analyzes the production decision of the remanufacturing company not considering emission reduction investment, and then studies the cases considering emission reduction investment in new or remanufacturing products. Through comparative analysis, we explore the adjustment of production strategies when the remanufacturing company considering emission reduction investment, and analyze the impact of emission reduction investment on social welfare(including the profit of remanufacturing enterprise, consumer surplus and environment impact). Studies show that carbon reduction investments in new products(remanufactured products) will result in the remanufacturing company expanding the production scale of new products(remanufactured products) and reducing the production of remanufactured products(new products). The emission reduction investment increases the profit of the remanufacturing enterprise and the consumer surplus, however, the environmental impact depends on the amount of carbon emissions in the remanufacturing process. Finally, the conclusions are verified by a case study.