<p>In the current era of industrial expansion, the rapid increase in carbon emissions has emerged as a critical challenge to environmental sustainability. Organizations are thus compelled to adopt effective carbon management strategies to minimize emissions throughout their supply chains. This study develops a sustainable inventory model for deteriorating items under two major regulatory frameworks carbon tax and carbon cap-and-trade policies within an inflationary environment. A potential hybrid carbon policy is also introduced to combine the strengths of both mechanisms. The model considers hybrid demand, dependent on both price and stock level, under a pre-payment discount scheme that incentivizes early payments. To mitigate deterioration, preservation technology investment is incorporated, where the deterioration rate decreases exponentially with preservation expenditure. Additionally, green technology investment is introduced to control total carbon emissions. The holding cost is assumed to vary linearly with time, reflecting inflationary effects on storage expenses. Shortages are permitted and partially backlogged at a fixed rate, providing flexibility in inventory management. The developed model aims to maximize the total average profit by jointly optimizing decision variables such as selling price, ordering quantity, preservation investment, and green technology level. Three numerical examples are solved using MATHEMATICA software, and the concavity of the profit function is validated graphically. Furthermore, a comprehensive sensitivity analysis is conducted to examine the influence of key parameters on optimal decisions and profitability. The findings highlight that strategic investment in green and preservation technologies not only enhances economic performance but also supports environmental sustainability under inflationary conditions.</p>