Construction Of Low-carbon Economy Based On Evolutionary Game Analysis

As a typical developing country, China is just in the process of industrializationwith a high speed of economic growth. But with the economic development continuesto accelerate, the domestic energy and environmental problems is also growingsignificantly.In response to the country’s sustainable development objectives,ourcountry has to reform the traditional economic mode into low-carbon economicswithout delay. As an emerging model of economic development mode,low-carboneconomy has been recognized and accepted by many countries gradually, at thatpoint,the Government has made the construction of low-carbon economy as a keystrategy into their work schedule.But compared with those developed countries in thecultivation of low-carbon technologies’development and low carbon-conscious publicawareness,our nation still has a great distance to go on;and in order to construct alow-carbon economy, there are many problems in practice waiting for a solution.Inthis paper,I took the government and manufacturers as the object of studyanalysis,through the game theory I study both of their behaviors during the issue ofconstruct a low-carbon economic development model. To analyze how they choosetheir action and how they interact on each other in order to improve the traditionalproduction mode into low-carbon technologies of production and the government andcorporate decision-making behavior; this paper takes use of numerical simulationideological technology to find out the intrinsic origin and give a further explanation orproof.Firstly,this paper use complete information static game model to simulate theissue and act at the best response function method to obtain the game’s Nashequilibrium solution.Through the study came the conclusion that in the absence ofappropriate governmental incentives,as both the government and the manufacturersact based on rational choices, it is difficult to achieve the pareto optimal result,thegovernment won’t take action and corporate carbon production will never realize.While if the government achieve some proper reward to low-carbon productionthrough appropriate policies or other forms of social recognitions to encourage,and the reward and punishment mechanism play an important role in achieving the goal ofconstruct a low-carbon economy based society is entirely possible. That requires theGovernment to actively take control policy and give those companies financialsupport on low-carbon technologies.Secondly, this paper engrain evolutionary game method to analysis how thegovernment and enterprises choose action in the long-term dynamics of the game.Byconstructing an evolutionary game model and solving the evolutionary stablestrategies and asymptotically stable state of the replicon dynamic equations,this paperdiscussed the progressive steady state in the case of different costs and incentiveefforts.The results can be summarized as that corporate decision-making behavior willbe the impact of government incentive mechanisms and the production costs, if theGovernment provides the appropriate low-carbon production incentives, thecompanies would be willing to adopt low-carbon modes of production; at the sametime the Government’s decision-making behavior is impact by the awareness of publiclow-carbon, if the social acceptance of low-carbon technologies is large enough,it willactively encourage the government to take control and promote the constructionpractices of low-carbon economy.Finally, in order to confirm the government regulation and the public low-carbonawareness’impact mechanism on the construction of low-carbon economy in thisgame,this paper use computer program to simulate the replicon equation in dynamicevolutionary game.The conclusion of the simulation further verifies that the outcomeof the game is correct, whether the Government is actively taking the regulatoryaction will impact the related enterprises choose how to produce.And the higher theamount of the reward on low-carbon production technology, enterprises will be moreinclined to Select low-carbon modes of production. Furthermore, educate thepublicans about the significant means of low-carbon economy can be effective to urgethe Government to construct a harmonious and sustainable economy.