The research on the game between enterprise and financial institutions in the environmental financial applications

Through the analysis of home and abroad research on environmental finance, this paper starts the research about the game between companies and financial institutions in carrying out environmental financial products. Then the result that it is impossible for companies to carry out environmental management approach to production in the case of relying solely on their own is worked out by the Cournot duopoly model. After the introduction of environmental financial products in the game, the result of game indicates it is conditional to lead the enterprises to carry out environmental management by environmental financial products. The effect of guidance by environmental financial products is related to some factors, such as the initial marginal cost of enterprise, the marginal cost of enterprise after developing environmental management, the discount coefficient, and so on.