Industrial firms are central to the effort to grapple with emission of greenhouse gases due to large
material flows they process. Thus, employing system dynamics approach, the present study explored
influencing factors of industrial firms' carbon footprint. Using empirical data from selected firms in
China, simulation results revealed that price of raw material; governmental subsidy and pressure from
international rules, as well as firm's awareness of social responsibility have slightly affected firms'
carbon emissions. On the contrary, some factors have obvious effects on firms' carbon footprint including
governmental regulation, awareness of consumer, company size, the ratio of low carbon package
and recycling