Game Analysis of Water Pollution Control in China’s Watershed

Abstract

Water pollution in the river basin is an important environmental management problem in China. At present, China’s environmental governance has entered the policy game stage centered on related interests. There are two main focus areas. First, it aims to resolve the conflict between the central government, local governments, and enterprises in terms of the utilization of basin resources and the environment. Second, it is responsible for the implementation of environmental policy. By analyzing the relationships between the central government, local governments, and enterprises in the process of water pollution control in the river basin, this study examines the environmental regulation of the central government and the collusion between local governments and enterprises to pollute the environment. To achieve this, game theory is applied from the perspective of information economics. Lastly, the study proposes corresponding policy recommendations in order to get out of the “prisoner’s dilemma”.