Abstract

This paper studied a motivation mechanism for attaining the target of energy conservation and emission reduction program in Xinjiang Province, China. It is known that the final goal of enterprises and governments is to realize profit maximization, based on which this paper set up a complete and imperfect information dynamic game model with enterprises and governments as two parties involved. Through the analysis of the model, it was found that reducing governments’ inspection cost cannot urge enterprises to conduct the conservation and emission reduction program and intensifying punishment for illegality behaviors which are against the energy conservation and emission reduction program will promote the development of enterprises’ energy conservation and emission reduction program. Keywords-energy conservation and emission reduction; motivation mechanism; influencing factor; government punishment; Xinjiang

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