IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i7p2533-d158805.html
   My bibliography  Save this article

System Dynamics Analysis of Evolutionary Game Strategies between the Government and Investors Based on New Energy Power Construction Public-Private-Partnership (PPP) Project

Author

Listed:
  • Lei Gao

    (Beijing Key Laboratory of New Energy and Low-Carbon Development, School of Economics and Management, North China Electric Power University, Changping, Beijing 102206, China)

  • Zhen-Yu Zhao

    (Beijing Key Laboratory of New Energy and Low-Carbon Development, School of Economics and Management, North China Electric Power University, Changping, Beijing 102206, China)

Abstract

The public-private-partnership (PPP) is a new mode for the government and social capital to jointly invest in public infrastructure projects. In particular, PPP projects for new energy power construction have been strongly supported in some countries in recent years, because it can not only reduce financial pressure on the government, but also promote the development of new energy. Current scholars study the economic benefits of PPP projects for new energy power construction from a macro perspective, and they rarely study behavioral strategies of the government and social capital as a game process of project construction from a micro perspective. This paper will fill this gap. This study firstly built an evolutionary game model of the government and investors based on new energy power construction PPP projects. Secondly, taking China’s typical new energy power construction PPP project–waste incineration power generation as an example, the system dynamics (SD) model was proposed to simulate the evolutionary process of game players’ behavioral strategies. Finally, the effects of key factors in the construction of PPP project on the strategies’ stability were studied. The results show that: (1) there is no evolutionarily stable strategy (ESS) in the game system between the government and investors, and system evolution is characterized by periodic behavior. (2) When the government implements dynamic bounty measures, the system evolution process is still a closed loop with periodic motion. However, when the government implements dynamic punishment measures, there is a stable ESS in the hybrid strategy of the game system. (3) The government can increase unit fines when making dynamic strategic adjustments, which will not only promote the active cooperation of investors, but also reduce the probability of government supervision, thereby reducing costs.

Suggested Citation

  • Lei Gao & Zhen-Yu Zhao, 2018. "System Dynamics Analysis of Evolutionary Game Strategies between the Government and Investors Based on New Energy Power Construction Public-Private-Partnership (PPP) Project," Sustainability, MDPI, vol. 10(7), pages 1-17, July.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2533-:d:158805
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/7/2533/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/7/2533/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arbulú, Italo & Lozano, Javier & Rey-Maquieira, Javier, 2017. "The challenges of tourism to waste-to-energy public-private partnerships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 916-921.
    2. Daniel Friedman, 1998. "On economic applications of evolutionary game theory," Journal of Evolutionary Economics, Springer, vol. 8(1), pages 15-43.
    3. Fan, Ruguo & Dong, Lili, 2018. "The dynamic analysis and simulation of government subsidy strategies in low-carbon diffusion considering the behavior of heterogeneous agents," Energy Policy, Elsevier, vol. 117(C), pages 252-262.
    4. Fang, Guochang & Tian, Lixin & Fu, Min & Sun, Mei, 2014. "Government control or low carbon lifestyle? – Analysis and application of a novel selective-constrained energy-saving and emission-reduction dynamic evolution system," Energy Policy, Elsevier, vol. 68(C), pages 498-507.
    5. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    6. Xin-gang Zhao & Yu-zhuo Zhang, 2018. "The System Dynamics (SD) Analysis of the Government and Power Producers’ Evolutionary Game Strategies Based on Carbon Trading (CT) Mechanism: A Case of China," Sustainability, MDPI, vol. 10(4), pages 1-18, April.
    7. Song, Jinbo & Sun, Yan & Jin, Lulu, 2017. "PESTEL analysis of the development of the waste-to-energy incineration industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 276-289.
    8. Song, Jinbo & Song, Danrong & Zhang, Xueqing & Sun, Yan, 2013. "Risk identification for PPP waste-to-energy incineration projects in China," Energy Policy, Elsevier, vol. 61(C), pages 953-962.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giovanna Andrea Pinilla‐De La Cruz & Rodrigo Rabetino & Jussi Kantola, 2022. "Unveiling the shades of partnerships for the energy transition and sustainable development: Connecting public–private partnerships and emerging hybrid schemes," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 1370-1386, October.
    2. Yunpeng Yang & Weixin Yang, 2019. "Does Whistleblowing Work for Air Pollution Control in China? A Study Based on Three-party Evolutionary Game Model under Incomplete Information," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    3. Jiahuan He & Xinggang Luo & Zhongliang Zhang & Yang Yu, 2021. "Strategic Analysis of Participants in the Provision of Elderly Care Services—An Evolutionary Game Perspective," IJERPH, MDPI, vol. 18(16), pages 1-27, August.
    4. Lei Gao & Zhen-Yu Zhao, 2020. "The Evolutionary Game of Stakeholders’ Coordination Mechanism of New Energy Power Construction PPP Project: A China Case," Sustainability, MDPI, vol. 12(3), pages 1-24, February.
    5. Xinpei Qiao & Hyukku Lee & Qi Shen & Yuchao Li, 2023. "Research on the Tripartite Evolutionary Game of Zero-Waste City Construction in China," Sustainability, MDPI, vol. 15(13), pages 1-19, July.
    6. Guangbin Wang & Yingxia Xue & Mirosław Jan Skibniewski & Jiule Song & Hao Lu, 2018. "Analysis of Private Investors Conduct Strategies by Governments Supervising Public-Private Partnership Projects in the New Media Era," Sustainability, MDPI, vol. 10(12), pages 1-26, December.
    7. Huang, Xingjun & Lin, Yun & Lim, Ming K. & Zhou, Fuli & Ding, Rui & Zhang, Zusheng, 2022. "Evolutionary dynamics of promoting electric vehicle-charging infrastructure based on public–private partnership cooperation," Energy, Elsevier, vol. 239(PD).
    8. Xueguo Xu & Tingting Xu & Meizeng Gui, 2020. "Incentive Mechanism for Municipal Solid Waste Disposal PPP Projects in China," Sustainability, MDPI, vol. 12(18), pages 1-16, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xin-gang Zhao & Yu-zhuo Zhang, 2018. "The System Dynamics (SD) Analysis of the Government and Power Producers’ Evolutionary Game Strategies Based on Carbon Trading (CT) Mechanism: A Case of China," Sustainability, MDPI, vol. 10(4), pages 1-18, April.
    2. Jin, Tao & Jiang, Yulian & Liu, Xingwen, 2023. "Evolutionary game analysis of the impact of dynamic dual credit policy on new energy vehicles after subsidy cancellation," Applied Mathematics and Computation, Elsevier, vol. 440(C).
    3. Xingyi Yang & Xiaopei Dai & Zhenyu Liu, 2023. "Retailers’ Audit Strategies for Green Agriculture Based on Dynamic Evolutionary Game," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    4. Zhi-Hua Hu & Shu-Wen Wang, 2022. "An Evolutionary Game Model Between Governments and Manufacturers Considering Carbon Taxes, Subsidies, and Consumers’ Low-Carbon Preference," Dynamic Games and Applications, Springer, vol. 12(2), pages 513-551, June.
    5. Hui Yu & Wei Wang & Baohua Yang & Cunfang Li, 2019. "Evolutionary Game Analysis of the Stress Effect of Cross-Regional Transfer of Resource-Exhausted Enterprises," Complexity, Hindawi, vol. 2019, pages 1-16, November.
    6. Xiongwei Quan & Gaoshan Zuo & Helin Sun, 2022. "Risk Perception Thresholds and Their Impact on the Behavior of Nearby Residents in Waste to Energy Project Conflict: An Evolutionary Game Analysis," Sustainability, MDPI, vol. 14(9), pages 1-20, May.
    7. Zhuozhuo Gou & Yansong Deng, 2021. "Dynamic Model of Collaboration in Multi-Agent System Based on Evolutionary Game Theory," Games, MDPI, vol. 12(4), pages 1-19, October.
    8. Fisher, Eric ON. & Kakkar, Vikas, 2004. "On the evolution of comparative advantage in matching models," Journal of International Economics, Elsevier, vol. 64(1), pages 169-193, October.
    9. Faggini, Marisa & Parziale, Anna, 2011. "Fitness landscape and tax planning: NK model for fiscal federalism," MPRA Paper 33770, University Library of Munich, Germany.
    10. Lei Gao & Zhen-Yu Zhao, 2020. "The Evolutionary Game of Stakeholders’ Coordination Mechanism of New Energy Power Construction PPP Project: A China Case," Sustainability, MDPI, vol. 12(3), pages 1-24, February.
    11. Matthew McGinty, 2010. "International Environmental Agreements as Evolutionary Games," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(2), pages 251-269, February.
    12. Dijkstra, Bouwe R. & de Vries, Frans P., 2006. "Location choice by households and polluting firms: An evolutionary approach," European Economic Review, Elsevier, vol. 50(2), pages 425-446, February.
    13. Kuechle, Graciela, 2011. "Persistence and heterogeneity in entrepreneurship: An evolutionary game theoretic analysis," Journal of Business Venturing, Elsevier, vol. 26(4), pages 458-471, July.
    14. Qianwen Wu & Qiangqiang Wang & Yongwu Dai, 2023. "Analysis of Strategy Selection in Third-Party Governance of Rural Environmental Pollution," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    15. Jie Jin & Jun Zhuang & Qiuhong Zhao, 2018. "Supervision after Certification: An Evolutionary Game Analysis for Chinese Environmental Labeled Enterprises," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    16. Yingxia Xue & Fang Liu & Guangbin Wang & Jungang Shao, 2023. "Research on Strategy Evolution of Contractor and Resident in Construction Stage of Old Community Renovation Project," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    17. Zhao, Dan & Ji, Shou-feng & Wang, He-ping & Jiang, Li-wen, 2021. "How do government subsidies promote new energy vehicle diffusion in the complex network context? A three-stage evolutionary game model," Energy, Elsevier, vol. 230(C).
    18. Wei Duan & Hengli Cao & Desheng Xu, 2023. "Research on the Impact of New Parts Price Increase on the Stability of Closed-Loop Supply Chain," Sustainability, MDPI, vol. 15(16), pages 1-24, August.
    19. Serdar Ş. Güner, 2004. "Aegean Territorial Waters Conflict: An Evolutionary Narrative," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(4), pages 297-312, September.
    20. Ling Cao & Jie Yin, 2023. "Research on Sharing Behavior Strategy of Cultural Heritage Institutions Based on Evolutionary Game Theory," Sustainability, MDPI, vol. 15(13), pages 1-23, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2533-:d:158805. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.