Centralized and Decentralized Recycle Policy with Transboundary Pollution

In this study, under the existence of unilateral cross-border environmental pollution in two regions, a complete information dynamic game theory is constructed to discuss the environmental policy (recycling fee and treatment subsidy) formulation of the central government by two local governments. As...

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Bibliographic Details
Main Authors: Chien-Hui Lee, Po-Sheng Ko, Yu-Lin Wang, Jen-Yao Lee, Jiong-Hung Kwo
Format: Article
Language:English
Published: MDPI AG 2020-05-01
Series:Environments
Subjects:
Online Access:https://www.mdpi.com/2076-3298/7/5/40
Description
Summary:In this study, under the existence of unilateral cross-border environmental pollution in two regions, a complete information dynamic game theory is constructed to discuss the environmental policy (recycling fee and treatment subsidy) formulation of the central government by two local governments. As a result, it was found that the spillover effect will reduce the level of social welfare. At the same time, the intervention of the central government and the adoption of policies tailored to local conditions will be conducive to the improvement of social welfare.
ISSN:2076-3298