Game Analysis of Government and Enterprises in the Development of Low-carbon Economy
Wang Jing
Abstract
Wang Jing
Abstract
In order to ensure the sustainable economic development,low-carbon economy becomes an efficient economic development model in China.The development of low-carbon economy needs not only the construction of the government's leading policy,but also the efforts related to the enterprises.The paper discusses the interaction between the government and enterprises by using static game theory and evolutionary game theory.The results of the static game theory analysis show that both the government's policies like carbon tax,low-carbon subsidies and the fines of the traditional enterprises and the development of enterprises' technology can effectively promote the low-carbon production of the enterprises.While the results of the evolutionary game analysis show that the limited rational enterprises will gradually tend to low-carbon production under a reasonable system.
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In order to ensure the sustainable economic development,low-carbon economy becomes an efficient economic development model in China.The development of low-carbon economy needs not only the construction of the government's leading policy,but also the efforts related to the enterprises.The paper discusses the interaction between the government and enterprises by using static game theory and evolutionary game theory.The results of the static game theory analysis show that both the government's policies like carbon tax,low-carbon subsidies and the fines of the traditional enterprises and the development of enterprises' technology can effectively promote the low-carbon production of the enterprises.While the results of the evolutionary game analysis show that the limited rational enterprises will gradually tend to low-carbon production under a reasonable system.
Key concepts: Subsidy, Government (linguistics), Game theory, Low-carbon economy, Order (exchange), Production (economics), Sustainable development, China