Air Pollution Regulations in China: A Policy Simulation Approach with Evolutionary Game
Zhaopeng Chu
School of Humanities and Law, Northeastern University, 195 Chuangxin Road,Hunnan District, Shenyang 110819, China (China)
https://orcid.org/0000-0002-9284-1602
Chen Bian
School of Business Administration, Northeastern University, Shenyang 110819, China (China)
https://orcid.org/0000-0002-5796-7672
Jun Yang
jun.yang@acadiau.caF.C. Manning School of Business Administration, Acadia University, Wolfville, NS, B4P 2R6, Canada (Canada)
https://orcid.org/0000-0002-5796-7672
Abstract
In the institutional context of China’s political centralization and fiscal decentralization, this study explores the environmental regulations that make the central and local governments join efforts in air pollution control. Policy simulations in an evolutionary game show that the best approach is to internalize environmental costs and benefits in local governments’ objective function. The effectiveness of several policy instruments is examined individually and jointly, including administrative inspection, transfer payment, and environmental taxes. It is shown that in case environmental consequences are not internalized, appropriate application of policy instruments can incentivize goal-oriented local governments to choose the socially optimal strategy.
Keywords:
air pollution, environmental regulation, evolutionary game, numerical simulationReferences
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Authors
Zhaopeng ChuSchool of Humanities and Law, Northeastern University, 195 Chuangxin Road,Hunnan District, Shenyang 110819, China China
https://orcid.org/0000-0002-9284-1602
Authors
Chen BianSchool of Business Administration, Northeastern University, Shenyang 110819, China China
https://orcid.org/0000-0002-5796-7672
Authors
Jun Yangjun.yang@acadiau.ca
F.C. Manning School of Business Administration, Acadia University, Wolfville, NS, B4P 2R6, Canada Canada
https://orcid.org/0000-0002-5796-7672
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