Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 51 , 01 December 2023
Open
Access | Article
Government and Polluting Companies’ Game Strategies in the Context of Green Finance —— A Prisoner’s Dilemma Game Model
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Abstract
Promoting the development of green industries to facilitate the growth of green finance has become a consensus among various sectors of society. This article focuses on the game theory strategies between governments and polluting companies in the context of green finance. Taking the Prisoner's Dilemma game model as an example, we discuss if polluting companies, under different types of governments, would choose to allocate loans towards improving production and environmental projects. Furthermore, we analyze whether the preferences of the general public towards eco-friendly products would influence the game strategies of governments and polluting companies. Through solving the model, we find that when governments increase penalties for polluting projects, reduce the costs of environmental project research and development for polluting companies, enhance environmental awareness among the general public, and stimulate their preference for eco-friendly products, they can strengthen corporate social responsibility and promote green investments. Consequently, polluting companies are more likely to invest in environmental projects to gain greater returns.
Keywords
green finance, local government, polluting companies, game theory, benefits
References
1. Ti, Y. (2017). Game theory analysis of the dilemma between SME financing difficulties and bank lending difficulties. Financial Studies, 13, 215+217.
2. Ma, J. (2015). On the construction of China's green financial system. Financial Forum, 05, 18-27. doi:10.16529/j.cnki.11-4613/f.2015.05.002.
3. Chai, H., Zhao, R., & Fang, Y. (2021). Research on the issuance of green bonds and the "green" incentive effect under the background of "dual carbon". Statistical and Information Forum.
4. Zhang, H., & Sun, J. (2019). Research on the development strategy of green finance under the trilateral game of government, banks, and enterprises. Financial Theory and Practice, 07, 24-33.
5. Li, L. (2022). Research on the trilateral game strategy of government, banks, and enterprises under the background of green finance. Industrial Innovation Research, 15, 145-147.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-149-0
- ISBN (Online)
- 978-1-83558-150-6
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/51/20230636
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited