Game analysis among the central government, local governments, and firms in China’s environmental pollution governance

Abstract

China’s environmental pollution governance has entered the game stage centered on interests, and there are three main bodies in environmental pollution governance: the central government, local governments and firms. The research firstly reveals the relationships among the central government, local governments, and firms in the process of environmental governance, and then analyzes the game among the central government, local governments and firms using game theory in Economics. Finally, the research makes a conclusion and proposes some corresponding policy proposals so as to solve the problem of environmental pollution.