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.