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Does Fiscal Policy Promote Third-Party Environmental Pollution Control in China? An Evolutionary Game Theoretical Approach

Author

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  • Caihua Zhou

    (Institute of Ecological Civilization, Jiangxi University of Finance and Economics, Nanchang 330013, China
    School of Public Finance and Public Administration, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Hualin Xie

    (Institute of Ecological Civilization, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Xinmin Zhang

    (Institute of Ecological Civilization, Jiangxi University of Finance and Economics, Nanchang 330013, China)

Abstract

To promote third-party environmental pollution control in China, it is necessary to dissect the mechanism of fiscal policy in third-party environmental pollution control. This study first discusses the acting paths of fiscal policies on third-party environmental pollution control in theory. A tripartite evolutionary game model involving the local government, the polluting enterprise, and the third-party enterprise is established. The replicator dynamics, evolutionary stability strategies, and numerical simulation of the behavior of the three participants are analyzed to further study the acting mechanism of fiscal policy in third-party environmental pollution control. In addition, the influences of other parameters on the implementation of third-party environmental pollution control are evaluated. The results show that the behaviors of the local government, the polluting enterprise, and the third-party enterprise influence each other. Furthermore, strengthening the relevant fiscal policy, reducing the risks of the polluting enterprise and third-party enterprise, and improving the benefit to the local government are conducive to promoting third-party environmental pollution control in China. Based on these results, this study proposes the following policy implications: formulating fiscal policies for third-party environmental pollution control, implementing fiscal policies in a dynamic and progressive manner, improving the market mechanism of third-party environmental pollution control, and strengthening the environmental performance assessment of the local government.

Suggested Citation

  • Caihua Zhou & Hualin Xie & Xinmin Zhang, 2019. "Does Fiscal Policy Promote Third-Party Environmental Pollution Control in China? An Evolutionary Game Theoretical Approach," Sustainability, MDPI, vol. 11(16), pages 1-18, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:16:p:4434-:d:258230
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    Cited by:

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    3. Tiangui Lv & Hualin Xie & Hua Lu & Xinmin Zhang & Lei Yang, 2019. "A Game Theory-Based Approach for Exploring Water Resource Exploitation Behavior in the Poyang Lake Basin, China," Sustainability, MDPI, vol. 11(22), pages 1-14, November.
    4. Caihua Zhou & Xinmin Zhang, 2020. "Measuring the Efficiency of Fiscal Policies for Environmental Pollution Control and the Spatial Effect of Fiscal Decentralization in China," IJERPH, MDPI, vol. 17(23), pages 1-19, December.
    5. Qianwen Wu & Qiangqiang Wang & Yongwu Dai, 2023. "Analysis of Strategy Selection in Third-Party Governance of Rural Environmental Pollution," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
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    7. Laura Vidal-Hernández & Diana de Yta-Castillo & Blanca Castellanos-Basto & Marco Suárez-Castro & Evelia Rivera-Arriaga, 2021. "Fiscal Economic Instruments for the Sustainable Management of Natural Resources in Coastal Marine Areas of the Yucatan Peninsula," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
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    10. Yongming Zhu & Lanxiao Niu & Zheyun Zhao & Jing Li, 2022. "The Tripartite Evolution Game of Environmental Governance under the Intervention of Central Government," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    11. Caihua Zhou, 2021. "Game Theory-Based Analysis of Local Governments’ Behavioral Dissimilation in the Third-Party Soil Pollution Control under Chinese-Style Fiscal Decentralization," Land, MDPI, vol. 10(4), pages 1-20, April.

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