Water Environment Governing: Game Theory Analysis Between Central And Local Government

Water environmental protection has becoming one major issue receivingmuch concern in China's national economic development. Since the reform andopening-up, the water environment of our country has been worsening gradually, whichhas becoming a restrictive factor curbing the social and economic development. There'sno time to delay for us to take measures to govern water environment. Although thecentral government has issued a series of policies to enhance macroeconomic regulatingand controlling, local authorities, by some reasons, are reluctant to take positivemeasures to regulate and govern water environment, which makes the effect of thecentral government policy unsatisfactory. This thesis takes water environmentalimprovement of the Yellow River as an example, analyzes intergovernmental relationand interest conflicts by means of game theory, and thus bears important model functionfor studying the establishment of China's environmental protection system whichshould be helpful in the realization of Western area's sustainable development.The game theory relation between the central and local authorities during policyformulating and implementing is a decisive factor as to the result of water environmentgoverning. For many years, the water environment problem of our country has beendifficult to solve, the main reason is that while economy is fast-developing, there existsinterest conflict between central and local governments. If this conflict can't be settleddown properly, reflected on the water environment goveming, there will be explicitgame theory relation between central and local authorities. Currently, however, as to theorigin of the water environment problems, most researches sum up the reason asenterprises' defying government's regulations and policies and cutting short sewagedisposal measures for cost reducing, while fail to give sufficient attention to the gametheory relation between central and local authorities resulted from interest conflicts.On the basis of affirming the property right theory and the outside theory, thisdissertation regards water environmental improvement as one kind of social andeconomic activities, attempts to take the inter governmental interest adjustment as thebreakthrough point to solve water environmental improvement problem. By means ofthe game theory study as to the central and local governments' relations during water environment governing in the Yellow River, this dissertation tries to construct atheoretical framework as to game theory analyzing intergovernmental interest of bothparts. Under this framework, people could utilize game theory to explore theenvironment governing, especially problems of policy-making and equilibrium whilerational policy-makers conflicts. Thus, on the condition of asymmetric information, wecan establish the economic research theory framework of related interest analysis inwater environment governing activities. In addition, this dissertation brings forward thegame theory model and coordinating method, suggests establishing fair and highlyeffective win-win environmental protection mechanism provides theory reference toprobe into the complexity of water environment governing and low efficientenvironmental protection supports scientific basis to consummate the Yellow Riverwater environment goveming system. Thus through game theory analysis, we couldform reasonable inter-governmental interests structure, realize economy andenvironment developed in harmony, and have great theoretical and practicalsignificance as to fulfilling the scientific concept of development and fabricateharmonized society between human being and nature.In conclusion, the main reason of game theory between central and localgovernments during water environment governing lies in the following two reasons:firstly, the central government excessively grants power to local government during thereform, which makes local governments ignore environmental improvement of waterduring the process of pursuing maximum benefits; Secondly, the governmentachievement evaluating and appraising system neglects environmental improvement ofwater. In order to change current situation, this dissertation starts with utilizing existingresearch works and modern theory tool from home and abroad, by means of studyingChina's water environment goveming present situation and the problem, suggests thatthe inter-governmental relations between central and local governments should beimproved mainly by strengthening the supervision authority of central govemment,setting up and improving seven respects such as local govemment's environmentalresponsibility, consequently, the game theory between central and local government willbe led to harmonious game theory.This dissertation has mainly taken methods such as the field investigation, caseanalysis etc. On the basis of drawing achievements and successful experiences of otherscholars as much as possible, this dissertation plan to make every effort to innovate in several following respects: The first one is the innovation of the title selection. Formerlymany researches found a foothold in the macro level, caused many achievement unableto be utilized in reality. Especially the water environment question concerns the issue ofpower and interest between central and local authorities, involves many disciplines suchas politics, management science, economics and so on. It is a comparatively idealdemonstration choice to use the theory of game theory to study environmentalimprovement of water, while engaging in studying the game theory between central andlocal authorities is a new visual angle of cut-in to studies of water resource. The secondone is the research technique innovation. In the process of this research, the authorcarried out research by means of one kind of empirical method, investigating rural field,arrived at Yellow River LAN Zhou section and it's upstream and downstream manytimes, obtained the first hand exhaustive material, built the solid foundation for thereasoning. The third one is the theory construction innovation. This research takes onesection of Yellow River as an illustration, utilizes game theory into the waterenvironment governing research, researches some questions of water environment fromdeep level, thus has certain practical significance.