A Study On The Benefit Game Dilemma Among Different Market Players In The Green Market Of China

Currently, the world is facing multiple challenges:financial crisis, energy crisis, climate crisis, and so on. Under this grim situation, developing green economy has become the common choice of different countries to get rid of economic depression and promote economic growth. The long-range "high-loss, high growth" economic development model of China has caused serious resource and environmental problems, which have profoundly constrained China’s sustainable development. To develop green economy is not only the inevitable choice to cope with the environment pressure at home and abroad, but also an important way to promote the mode transformation of economic growth of our country. To develop green economy is inseparable from the market. Only by achieving the prosperity of green market can realize the sustainable and healthy development of the green economy.In recent years, China’s green market has made great achievements; however, compared with foreign countries, the developing pace and scope still lag behind. The market players are lack of initiatives to involve in the green market, which has restricted the green economy and the sustainable development goal of China. Only to find out the root causes which hinder the development of green market, can the policy-makers address the problem and draw effective measures to promote the smooth development of green markets and green economy.Taking use of the normative research method, the paper has firstly illuminated the current development status and dilemma of China’s green economy and green market; starting from the interest conflicts of company, customer and local government in the green market, and based on sustainable development theory, environmental and economic theory, externality theory, and externality theory, this paper has then conducted an in-depth analysis on the benefit games of the three market players by using the game method, and explored the underlying causes of the predicament in China’s green market. Based on the study, the mechanism to break the game dilemma of the green market is discussed in the end.The results of the research are concluded as follows. First, in the case of imperfect market environment and week green awareness, due to the differences in interests and needs, none of the market players is willing to initiatively bear the benefit loss brought by the green cost, which results in the insufficient motive power of the green market. Second, the positive externalities of the green value and the negative internalities of the market are the deep-seated reasons which cause the predicament of the green market development. Third, in order to break the game dilemma and promote the development of the green market, effects of building green cost sharing mechanism, reducing the externalities of green value, and improving the situation caused by internalities shall be made.Based on the game analysis, the relevant policy recommendations for how to build the cost-sharing mechanism, the new market dynamic equilibrium mechanism, and the green information transmission and monitoring mechanism have been proposed at last.