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The Application of Game Theory in Environment Pollution

Author: GuoGuiZuo
Tutor: LiuBaoDong
School: Shandong University
Course: Applied Mathematics
Keywords: Sewage charges Mathematical model Oligopoly Game Transboundary pollution
CLC: O225
Type: Master's thesis
Year: 2008
Downloads: 601
Quote: 4
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Abstract

Domestic policy for the environment, economy and management research is still in its infancy, and China's worsening environmental problems makes this respect the needs of the research is extremely urgent. Game theory is the study of the theory of management policy, many articles to the introduction of game theory to environmental management, but most are just using game theory qualitative analysis of environmental pollution policies. This paper attempts to use game theory to the quantitative analysis of environmental issues, the study is based on mathematical formulas. Some of the environmental problems at the same time involves several countries, it can not be confined within a country to solve these problems, such problems are major global environmental issues such as ozone depletion, transboundary pollution. Cooperation between contaminated countries interdependence means that the state will be an effective way to solve such problems. However, the key does not exist beyond the rights of the state institutions to foster collaboration. In addition, cooperation does not necessarily enable all countries to benefit, some countries income may be reduced, so that they do not want to participate in the cooperation. Even if cooperation to revenue growth in all countries, some countries may think the free-rider's higher income. This is the main obstacle to cooperation between nations. In order to avoid the embarrassing situation of lower returns, the accepted practice in international revenue increased state revenue to reduce the national compensation, and more for the economy in the form of compensation. Game theory to the study of the theory in this regard, through the establishment of the the math game model and model results analysis, to achieve the purpose of the above environmental theory. This paper first introduces the background knowledge of environmental economics and game theory, through a simple sewage regulatory game model to find a combination of environmental economics and game theory point to begin this thesis research on the environmental model, followed by the establishment of a game model of transboundary pollution, human cooperation and Bureau of the model into the players uncooperative both cases, respectively, for optimal results (the first optimal result is a Nash equilibrium, the second result is Pareto optimal ), two results were analyzed and compared to important conclusions: cooperation between countries is an effective way to resolve the cross-border pollution. The proposed economic compensation is an effective complement to cooperation between the countries, this view can be demonstrated by the creation of Internet game model, but also can be left to the future to continue to study a subject. Finally, we also establish the model of the the sewage charges Game oligopolistic conditions, reaction function and the cashier a balanced solution, and Nash equilibrium analysis to explore the the oligopolistic conditions under severe toll on the sewage problem, from the charges on the degree of industry concentration. impact, under the conditions of oligopoly optimal charges and costs of enterprises deal with technological progress in promoting the role of analyzes, and draw the following important conclusions: the degree of market concentration increase in sewage charges will increase the market share of more concentrated in the hands of the leading companies with lower production costs, improve sewage charges will also help prevent the joint between the oligarchs, thus contributing to the sound development of the market.

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