Incentive Contract Design for Cooperation and Win-Win of Chinese Government and Enterprise in the View of Ecological Civilization

Hongwei LIN, Yihong LUO, Huishan LIN, Yunhua ZHANG, Zhiliang ZHANG

Abstract


In the view of ecological civilization, the incentive contract between government and enterprise to cooperate and build ecological economy is built by introducing value preference parameter into the classical principal-agent model. Model equilibrium has been analyzed and a numerical example verifies the validity of conclusion. Research results prove that value preference parameter can effectively coordinate interest relationship between government and enterprise and control incentive cost. Value preference parameter of government, marginal output and risk avoidance attitude of enterprise can influence the change of incentive contract.


Keywords


Ecological civilization; Value preference; Cooperation between government and enterprise; Win-win; Contract design

Full Text:

PDF

References


An. Z. R., Ding, H. P., & Hou, H. W. (2013). Game analysis and strategy research of stakeholder of environmental performance. Inquiry into Economic Issues, (3), 30-36.

Boland, A., & Zhu, J. (2012). Public participation in China’s green communities: Mobilizing memories and structuring incentives. Geo forum, 43(1), 147-157.

Cai, L. R., Zeng, W., & Wang, H. W. (2009). System dynamics model for mixed-strategy game of environmental pollution. Application Research of Computers, 26(7), 2465-2468.

Chen, S., Chen, B., & Fath, B. D. (2013). Ecological risk assessment on the system scale: A review of state-of-the-art models and future perspectives. Ecological Modeling, 250, 25-33.

Cui, Y. F., & Liu, X. C. (2009). Game analysis for management strategy of environmental pollution among Chinese local government-view based on government social warfare goals. Theory and Reform, (6), 62-65.

DeCanio, S. J., & Fremstad, A. (2013). Game theory and climate diplomacy. Ecological Economics, 85, 177-187.

Deng, L. (2012). Exploration for mode of carrying on industry transfer in the view of ecological civilization. Jilin University Journal Social Sciences Edition, 52(5), 106-111.

Gorobets, A. (2014). Eco-centric policy for sustainable development. Journal of Cleaner Production, 64, 654-655.

Korhonen, J. (2004). Industrial ecology in the strategic sustainable development model: strategic applications of industrial ecology. Journal of Cleaner Production, 12(8), 809-823.

Lu, F. Y. (2007). Evolutionary game analysis on environmental pollution problem. Systems Engineering-Theory & Practice, 27(9), 148-152.

Vandergeest, P., & Unno, A. (2012). A new extra territoriality? Aquaculture certification, sovereignty, and empire. Political Geography, 31(6), 358-367.

Wang, D. M., & Li, W. Q. (2004). Application of game theory to environmental protection. Urban Environment & Urban Ecology, 17(5), 45-47.

Wang, H. G., & Teng, Y. H. (2012). Dynamic game analysis for local government and polluting enterprises. Technical economy and management research, (11), 14-18.

Wei, Z., et al. (2011). Ecological civilization construction is the fundamental way to develop low-carbon economy. Energy Procedia, 5, 839-843.

Wu, W., Chen, G. Y., & Wang, H. C. (2001). The Gamble Analysis on Environmental Protection Problem. Systems Engineering-Theory & Practice, 10, 115-119.

Yuan, Y. J., & Geng, D. H. (2010). The transmission mechanism of environmental policies and sustainable development on environment protect industry of China—based on research of government and pollutant corporation and environment protect corporation. Chinese Industrial Economy, (10), 65-74.

Zhu, Q. H., & Dou, Y. J. (2007). An evolutional game model between governments and core-enterprises in green supply chains. Systems engineering-theory & practice, 12(12), 85-89.




DOI: http://dx.doi.org/10.3968/7436

Refbacks

  • There are currently no refbacks.


Copyright (c) 2015



Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

Submission Guidelines for Canadian Social Science

We are currently accepting submissions via email only. The registration and online submission functions have been disabled.

Please send your manuscripts to css@cscanada.net，or css@cscanada.org for consideration. We look forward to receiving your work.

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 

Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:caooc@hotmail.com; office@cscanada.net

Copyright © Canadian Academy of Oriental and Occidental Culture