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Evolutionary Game Strategies Analysis of Economic Development and Environmental Protection between Local Governments under Central Supervision Mechanism in China

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  • Lin Wang

    (School of Economics and Management (Tourism), Dalian University, Dalian 116622, China)

  • Feng Pan

    (School of Public Administration and Humanities and Arts, Dalian Maritime University, Dalian 116026, China)

  • Yingjie Li

    (School of Public Administration and Humanities and Arts, Dalian Maritime University, Dalian 116026, China)

Abstract

The positive interaction between economic development and environmental protection is an important social issue which concerns people’s livelihoods. In order to explore the coordinated path of economic development and environmental protection, game models are constructed, successively, between local governments and among central-local governments by the evolutionary game method, and then, numerical simulation technology is used to analyze the results. The results show that the presented evolutionary stability strategies are consistent with the three stages of economic development and environmental protection since the reform and opening up in China. From the early to the middle stage, the sum of the special governance funds and local penalty fees play a key role; from the middle to the late stage, the heterogeneity coefficient between the local governments, local environmental governance costs, and environmental pollution losses plays a decisive role; during the late stage, the sum of the special governance funds and local penalty fees and the performance appraisal indicators play an important role. According to the above conclusions, local governments tend to choose environmental priority strategy, and the central government tends to choose a loose supervision strategy to achieve coordinated development by improving the phased planning for coordinated development, appropriately increasing the special governance funds and local penalty standards, and appropriately balancing the weights of the economic and environmental indicators.

Suggested Citation

  • Lin Wang & Feng Pan & Yingjie Li, 2022. "Evolutionary Game Strategies Analysis of Economic Development and Environmental Protection between Local Governments under Central Supervision Mechanism in China," Sustainability, MDPI, vol. 14(19), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12498-:d:930671
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    References listed on IDEAS

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    1. Renström, Thomas I. & Spataro, Luca & Marsiliani, Laura, 2021. "Can subsidies rather than pollution taxes break the trade-off between economic output and environmental protection?," Energy Economics, Elsevier, vol. 95(C).
    2. Zhaolong Wang & Yeqing Yang & Yu Wei, 2022. "Has the Construction of National High-Tech Zones Promoted Regional Economic Growth?—Empirical Research from Prefecture-Level Cities in China," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
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