The Validity Analysis of the Government Policy for Air Pollution Control in a City Competition Setting in China

It is an important issue that city government must pay attention to the air pollution control. A basic assumption of the viewpoint is that city government can control the air pollution theoretically depend on the actualization of some market-oriented policies such as environmental taxes, tradable permits, finance allowance for reducing pollution, etc. However, those contentions are not always available in a city competition setting in china. With the dynamic game model between the pollution enterprise and the city government being built, and the presuppositions of ´possessing the core competencies´ with ´the furious competition condition´ being compared, the evolvement rule of firm´s and city´s profitability was discovered, and some policies were put forward for air pollution control in a city competition setting in china.