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Vertical decentralization, environmental regulation, and enterprise pollution: An evolutionary game analysis
Yuntao Wu1, Jin Hu1, Muhammad Irfan2
1School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, Guizhou, 550025, China.
Effective green transformation requires governments to incentivize industries and enforce regulations. Central government financial aid to local governments is crucial for driving sustainable economic development and climate change mitigation.
Area of Science:
- Environmental Economics and Policy
- Game Theory and Public Administration
- Sustainable Development and Climate Change Management
Background:
- Sustainable economic development and climate change mitigation necessitate robust green transformation strategies.
- Understanding the complex interplay between government levels and industrial behavior is vital for effective environmental policy.
Purpose of the Study:
- To analyze the dynamic interactions influencing green transformation management among industrial enterprises, local governments, and the central government.
- To investigate the roles of vertical decentralization, environmental regulation, and enterprise pollution in achieving sustainability goals.
Main Methods:
- Development of an evolutionary game model incorporating industrial enterprises, local governments, and the central government.
- Analysis of the dynamic interactions among vertical decentralization, environmental regulation, and enterprise pollution.
Main Results:
- Increased environmental taxes incentivize industrial enterprises towards green transformation and enhance government supervision.
- Central government financial incentives are critical drivers for local government green transformation under vertical decentralization.
- Positive social benefits from local governance and negative impacts of non-compliance are key factors in management.
Conclusions:
- An integrated framework addressing financial incentives, regulatory enforcement, and social benefits is essential for successful green transition management.
- Findings offer valuable insights for developing nations to strengthen governance capacity during green transformation.
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