Research of the Behavior of Low-Carbon Economy Subjects Based on Incentive Compatibility Theory

Abstract

The development of low carbon economy is closely related to the interests of all sectors of society, especially the main three to participate: the government, enterprises and the public. In this process, how to coordinate the interests of all parties and formulate a reasonable incentive mechanism has become an important task for the government. Studied on the analysis of the behavior status and goals of the government, enterprises and public on the background of low carbon economic development, then used the game method to quantify each object’ interests of the target and relations. At last, designed incentive mechanism on the basis of incentive compatibility principle to meet the individual subject welfare maximization and, the greatest degree of protection for the development of low carbon economy.