An Economic and Environmental Bi-Performance Objective Incentive Model for a Firm

摘要

After discussing the features of a firmȁ9;s economical performance and environmental performance, the relationship between them, and the running requirement, this paper builds up an economic and environmental bi-performance objective incentive model for a firm with principal/agent theory. Economical performance is inside-driven, and environmental performance is outside-driven. Both local government and firms are required to act with the results of model analyzing. An outside incentive or monitoring mechanism should be built for a firmȁ9;s environmental behaviors.