Study on regulation design about energy-saving and emission-reduction based on game theory

Energy is an important material foundation for the development of national economy. Chinaʹs energy consumption mainly depends on fossil fuel which may be used out. On the other hand, energy consumption leads to a lot of environment problems. It’s very significant to keep the energy, environment, and economic harmony. So, the implementation of the policy on energy-saving and emission-reduction is an imminent problem to solve. In this paper, we apply the game theory to analyze the optimal strategy between the government and the enterprises in the process of implementing energy-saving and emission-reduction action. Then we get a mixed strategy Nash equilibrium solution. Finally according to the relationship of parameters obtained, we provide available recommendations for the government to design institutions.