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Evolutionary Game Research on the Impact of Environmental Regulation on Overcapacity in Coal Industry

Author

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  • Bo Fan
  • Tingting Guo
  • Ruzhi Xu
  • Wenquan Dong

Abstract

Currently, the world is facing two significant challenges: low-carbon development and overcapacity. Government departments must reexamine their development strategy of energy industry. Implementing environmental regulatory policies and technological innovation can help alleviate coal industry’s overcapacity, while sustainable development requires joint actions of governments, enterprises, and the market. Based on the evolutionary game theory, this study constructs a tripartite evolutionary game model of local government, power industry, and coal enterprise. Under the premise of bounded rationality, the evolution path of each player in the game under the market incentive environmental regulation is analyzed, and the influence of the change of parameters of each player on the result is numerically simulated. The study found that strengthening environmental regulation by local governments is an inevitable choice to promote the transformation and upgrading of coal industry and power industry. In addition, reducing law enforcement costs and technological innovation costs are the fundamental point of the coordinated development of the three parties. Technological innovation in the power industry will reduce the probability of coal companies’ choosing clean production strategies, while seeking low-cost clean production technology and financial support is the key to coal companies’ optimization of production capacity.

Suggested Citation

  • Bo Fan & Tingting Guo & Ruzhi Xu & Wenquan Dong, 2021. "Evolutionary Game Research on the Impact of Environmental Regulation on Overcapacity in Coal Industry," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-19, March.
  • Handle: RePEc:hin:jnlmpe:5558112
    DOI: 10.1155/2021/5558112
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    Cited by:

    1. Shao, Quan & Yuan, Jia, 2022. "Study on the disposal strategy of civil aviation passenger collective events based on evolutionary game theory," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 598(C).
    2. Cheng Lu & Shuang Li & Kun Xu & Jiao Liu, 2022. "Coal Mine Safety Accidents, Environmental Regulation and Economic Development—An Empirical Study of PVAR Based on Ten Major Coal Provinces in China," Sustainability, MDPI, vol. 14(21), pages 1-13, November.

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