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Modeling the Role of Government, Firm, and Civil Society for Environmental Sustainability

Modeling the Role of Government, Firm, and Civil Society for Environmental Sustainability
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Author(s): Humaira Yasmeen (Nanjing University of Aeronautics and Astronautics, China), Ying Wang (Nanjing University of Aeronautics and Astronautics, China), Hashim Zameer (Nanjing University of Aeronautics and Astronautics, China) and Hina Ismail (NUML Multan Campus, Pakistan)
Copyright: 2020
Pages: 22
Source title: Developing Eco-Cities Through Policy, Planning, and Innovation: Can It Really Work?
Source Author(s)/Editor(s): Information Resources Management Association (USA)
DOI: 10.4018/978-1-7998-0441-3.ch003

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Abstract

The objective of this article is to design a game theory-based model to outline the role of the government, firm and civil society for environmental sustainability. The study used the dynamic game theory of complete information. Based upon the equilibrium analysis, the study highlights that when the punishment for non-compliance with environmental responsibility is smaller, the role of civil society would be higher for environmental sustainability. On the other hand, when the environmental responsibility cost is higher, then the role of a government is also higher for the implementation of environmental responsibility and to ensure the punishment. However, the authors found from model analysis that if the cost is low, the probability of firm to fulfill environmental responsibility is higher. In real life, the high cost of environmental responsibility is the main reason that the firm does not fulfill environmental responsibility. Under the high cost, the firm often has the phenomenon of bribery to the government and other means to avoid environmental responsibility. This article is a valuable policy guide for policy makers to cope with global environmental challenges.

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