| Abstract | During the APEC meeting in 2014, China set the target that the carbon emission will peak around the year of 2030, which becomes an important constraint for China’s future economic growth. By establishing an Oligopolistic production competition model, this paper discusses how to carry out the energy differential pricing on the production side and the consumption side in order to maximize the national welfare under the pressure of carbon emission constraint. The results show that the energy pricing on consumption side improves with the progress of the nation’s energy saving technology on both sides, decreases with the raising of nation’s unit energy costs. And the energy pricing on production side is not only influenced by the above mentioned factors, but also influenced by the population of the two countries, the tariff rate, the energy saving technology level of foreign country’s production side, the unit energy costs of the foreign country etc. Moreover, based on the differences of the energy saving technology between production side and consumption side, the nation can adjust the tariffs to relieve the pressure of higher energy cost caused by carbon emission reduction. Further more, pushing foreign country to reduce tariff and breaking trade barriers will also achieve the similar effect. |