Abstract: Considering the carbon cap and trade policies, the influence of carbon futures on production decision-making of risk-averse enterprises remanufacturing construction machines is studied. Firstly, production decision models of risk-averse remanufacturing enterprises considering carbon free futures and carbon futures are established, respectively. Then, the Kuhn-Tucker condition is used to solve the model, while the optimal solutions in two scenarios are compared. Finally, a numerical example is used to analyze the impact of carbon futures and the risk aversion factors on output, enterprise utility, consumer surplus and total carbon emissions. Results show that in the condition of enterprises with high risk aversion, the introduction of carbon futures always increases the output of new products and total output; with the increase of carbon futures, the output of remanufactured products increases with the complete remanufacturing strategy and decreases with the partial remanufacturing strategy; in addition, when the degree of enterprise risk aversion is high, the enterprise utility, consumer surplus and total carbon emissions considering carbon futures are higher than those without considering carbon futures.

Key words: risk aversion, carbon futures, carbon cap and trade, construction machinery remanufacturing, production decision-making