A Study of Incentive Mechanism of Regional Coal Enterprises Environment Conservation Based on Rank-Order Tournament

Coal enterprises environment conservation has been the important issue that is harassing the development of China´s economy, and then the environment supervision of regional coal enterprises has the typical problems such as supervision difficulty and high supervision cost. Based on incentive mode of Malcomson´s Rank-order tournament the paper analyzed the environment supervision of regional coal enterprises, and the results showed that designing a right premium proportion would both decrease the supervision expense of government and improve the positivity of environment conservation from coal enterprises.