Clean coal governance strategies of multi-level government

Abstract

Conflicting interests among governments at all levels and coal enterprises are not conducive to the implementation of China’s dual-carbon strategy in the coal industry. This study provides a theoretical analysis of the stabilization strategies of governments and coal enterprises by refining Bayesian and evolutionary games to explore the factors that influence each stakeholder’s strategies. The results show that the provincial government plays a key role in the implementation of low-carbon strategy. Corporate bribery can influence municipal government decisions but does not interfere with the ideal state, and the provincial government must only monitor the implementation of low-carbon strategies in municipal governments. Additionally, an incentive-compatible system can encourage municipalities to enforce environmental regulations, thereby mitigating conflicts of interest among stakeholders.

Keywords

• Fiscal decentralization
• Carbon emission reduction
• Refined Bayesian game
• Tripartite evolutionary game