Abstract
This paper analyzes formation conditions of regional economic development and trans-boundary environmental pollution governance cooperation mechanism by building a cooperative game model and numerical calculation. Net utility of local governments is the difference between economic utility and trans-boundary pollution governance cost, and coalition help local government expand the increment of economic utility and conserve loss of environment utility. This paper use Shapley value method to allocate net utility rising from cooperation between local governments. When the utility of local governments participating in cooperation is greater compared to not participating in cooperation, local governments cooperate for regional economic development and environmental governance.
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