Study on Long-term Mechanism for Government to Encourage Enterprises on Low-carbon Development —Analysis based on Enterprises' Capacity Variance and Task Difficulty

摘要

Based on reference to Lazear and Rosen (1981) rank-order tournaments mechanism model, this essay introduces the two variables, namely capacity variance and task difficulty, to establish a long-term mechanism model for the government to encourage enterprises for low-carbon development. It is included through model analysis that, the optimal effort level during enterprises' low-carbon development is directly proportional to bonus difference (L-l) set by the government, and inversely proportional to task difficulty, capacity variance and "performance" appraisal error. When enterprises' capacities are identical, their optimal effort level will be the highest and equal. Besides, the government should take task difficulty and capacity into comprehensive consideration to set reasonable bonus difference. If task difficulty is relatively large, the government should enlarge bonus difference; if task difficulty is small, the government should correspondingly shorten bonus difference.