Coal enterprises environment conservation has been the important issue that is harassing the development of China's economy, and then the environment supervision of regional coal enterprises has the typical problems such as supervision difficulty and high supervision cost. Based on incentive mode of Malcomson's Rank-order tournament the paper analyzed the environment supervision of regional coal enterprises, and the results showed that designing a right premium proportion would both decrease the supervision expense of government and improve the positivity of environment conservation from coal enterprises.
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