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August 16, 2026Advanced ElectromagneticsOpen Access

Differential Game Model of Collaborative Governance between Local Governments and Polluting Enterprises from the Perspective of Incentive Compatibility

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Authors

NKN. KangHarbin Institute of TechnologyTHT. HongHarbin Institute of Technology

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Implication

Game-theoretic modeling reveals an incentive-compatible dynamic payment mechanism optimizes enterprise emission reduction, indicating improved collaborative environmental governance.

Key Points

  • To establish an incentive-compatible differential game framework analyzing dynamic collaborative optimization between local government regulation and enterprise emission reduction.
  • Formulated a differential game with pollution stock as the state variable and regulatory intensity alongside enterprise abatement effort as control variables.
  • Derived feedback Nash equilibrium and cooperative Pareto-optimal strategies, integrating a state-dependent dynamic transfer payment mechanism.
  • Conducted numerical simulations under diverse initial conditions to analyze long-term pollution accumulation, system stability, and social welfare.
  • The state-dependent dynamic transfer payment mechanism achieved incentive compatibility while maintaining individual rationality for both participants.
  • Numerical simulations demonstrated that the cooperative governance strategy reduced long-term pollution accumulation and enhanced overall social welfare.

Cite This Study

Kang et al. (2026) studied this question.

synapsesocial.com/papers/6a817a01f2fb91fc834ad827https://doi.org/10.7716/aem.v15i3.3389
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