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The Game Analysis on Environmental Pollution and Control

Author: ZhangYanXia
Tutor: LiuBaoDong
School: Shandong University
Course: Applied Mathematics
Keywords: Game Mathematical model Expected profit Nash equilibrium
CLC: O225
Type: Master's thesis
Year: 2010
Downloads: 307
Quote: 2
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Until recently, the study of environmental economics and its management policy has been at the development stage in China. However, study of this field is becoming more and more necessary according to the worsening environmental situation in our country. Game theory is to study a direct interaction between the decision-makings and the equilibrium, at present, many papers use the game theory to solve environmental management problems, but most of them are only qualitative analysis. Environmental economics is about economic instruments for environmental management. In this paper, the author will use the game theory and environmental economics to analysis environmental issues on the quantita-tive analysis, that is, research and analysis based on mathematical formulas and mathematical models.In the chapter two, three and four, the author will establish and solve the game models in a perfectly competitive market environment. Game models es-tablished in this paper are based on such a dynamic process:each polluter knows the environmental enforcement agency’s policies, including emission charges,audit and monitoring policy and punishing policy. Then they determine their actual emissions and reported emissions. Environmental enforcement agency will charge polluting emissions according to polluter’s reports, and in the meantime it will take measures of audit and monitoring policy. Anyone making false report will be punished when he is audited and monitored. The author will consider the transboundary pollution problems in the chapter five.First of all, the author introduces the problem to be studied, environmental economics and game theory’s knowledge and research on environmental issues at home and abroad, the status quo of economic instruments for environmental management in China, as well as the main structure of this article, the main content and innovation. The author will use a tripartite model of dynamic game to find the combination of environmental economics and game theory as the beginning of the paper. Through the analysis of a tripartite model of dynamic game of the enterprise, the environmental enforcement agency and residents of the sewage, this article comes to a tripartite dynamic balanced solution when they get the best expected profit respectively, and then the author puts forward the measures about control to achieve the total maximum benefit of the society.Following, the author will establish a Stackelberg charging model and use trailing corporate reaction function can obtain the Nash equilibrium; in order to get more specific results, the author will consider the simple case about the linear model and get some conclusions. Charging system has a great impact on the enterprises and technological progress.Then the author will extend the study about the regionally environmental governance, the game models with complete information and incomplete informa-tion on individual cases, By solving the models, respectively,we can obtain two kinds of optimal (the first optimal solution is Nash equilibrium, the second one is Pareto optimal), and the author gets several important conclusions:the amount of pollutant control with Pareto optimal is greater than the amount of pollutant control with Nash equilibrium, the polluter’s actual emissions and reported emis-sions will reduce as the charges increase, if the environmental enforcement agency increases the charges, the probability of inspection must be increased correspond-ingly, otherwise, the increase in sewage charges will encourage more enterprises to give up complying with the charging policy.Finally, the author will put forward the cooperation between countries to solve the transboundary pollution problems in an effective way, but also it can be a further study topic.

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CLC: > Mathematical sciences and chemical > Mathematics > Operations Research > Game theory ( game theory )
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