ORIGINAL RESEARCH
Differential Game Model
of Government-Enterprise Cooperation
on Emission Reduction under Carbon Emission
Trading Policy
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1
Business School, University of shanghai for science and technology, Shanghai 200093, China
2
School of Politics and Public Administration, Soochow University, Suzhou, 215123, China
Submission date: 2022-02-27
Final revision date: 2022-05-05
Acceptance date: 2022-05-14
Online publication date: 2022-09-26
Publication date: 2022-09-28
Corresponding author
Guangkuo Gao
University of shanghai for science and technology, China
Pol. J. Environ. Stud. 2022;31(5):4859-4871
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ABSTRACT
In the context of green development, cooperation between government and enterprises in emission
reduction is an effective way to improve the efficiency of enterprise emission reduction. In carbon
trading policies, this paper assumes that the consumer demand influenced by product green level and
enterprise goodwill, considering the continuous production in a multiple cycle under the condition
of dynamic change characteristics, constructs the government and enterprise cooperation to reduce
emissions of three kinds of differential game model, to explore the effective way of government and
enterprise cooperation. The results show that cost-sharing contracts can achieve Pareto improvement
of revenue for the government, enterprise under a certain condition; the revenue of the government,
enterprises, and systems are optimal under collaborative cooperation. Finally, we prove the validity
of the conclusion through an example analysis, and the sensitivity of related parameters is analyzed.