A Game Analysis of Environmental Governance: A Case Study of Baosteel Group

According to the serious trend of environment of enterprise, at first, the complicity actions among local government, enterprise and community residents are analyzed. Using game theory, two mixed strategy equilibrium models are constructed using economic game theory, that is, four stakeholders of safety management for environment governance, which includes central government, local government, enterprise, and community residents, are regarded as players. One is the game model between central government, local government and enterprise, the other is game model between enterprise and community residents. Then, the solutions for two models are analyzed and the reasons for environment of enterprise are studied. Lastly, using Baosteel Group Co. as a case study, the relation between its steel output and environmental index is analyzed, and its environmental pressure is studied. Furthermore, the counter measures to the environment governance are put forward.