Using cooperative game model of air pollution governance to study the cost sharing in Yangtze River Delta region

Abstract

To solve the increasingly serious air pollution problem, regional air pollution collaborative governance as an effective way is introduced in this paper. Firstly, this study constructs a game model of regional air pollution collaborative governance, and three classic cost sharing methods are used to allocate the cost of air pollution governance; Then the emission reduction cost of regional cooperative governance is obtained; Finally, the study makes an empirical analysis on the cost sharing of SO2 emission reduction by four local governments of the Yangtze River Delta region in 2017. The results show that: (i) The emission reduction cost of regional cooperative governance is better than that of individual governance, and in 2017 the cost of SO2 cooperative governance in Yangtze River Delta region is reduced by about 1.8% compared with the individual governance; (ii) The Shapley value method is utilized to allocate the benefits of the cooperative SO2 governance of four provinces in the Yangtze River Delta region, which indicates that all local governments can obtain certain profits from this cooperation and the cooperative alliance is stable; (iii) Collaborative governance of regional air pollution can meet the requirements of both collective rationality and individual rationality at the same time.