The Interest Game and the Public Crisis in China's Rural Ecology

摘要

This study is based on research into China's public crisis in rural ecology caused by the ignorance of local government towards sustainable development;it applies the analytical method of Game.The study analyzes the behavioral characteristics of the Central Government,local government and contamination-making enterprises in the process of the interests game,including the economic consequences of Nash Equilibrium.It concludes that the root of the public crisis in rural ecology lies in a chain of local interests.Due to the high costs of supervision,the Central Government has failed to achieve environmental protection effectively.The key to the solution is to enforce severe penalties for negligence by local governments.Because of local interests,the local officials have been negligent in performing their public duties.The ultimate way out of the crisis is to clarify and protect fanners' property rights to rural ecological resources.