IDEAS home Printed from https://ideas.repec.org/a/kap/compec/v66y2025i5d10.1007_s10614-025-10846-y.html
   My bibliography  Save this article

Optimal Incentives for Eco-Environment-Oriented Development of Disused Mines Based on Differential Games: Ecological Rehabilitation Compensation or Carbon Quota Exchange

Author

Listed:
  • Ning Wang

    (Southwest Jiaotong University)

  • Deqing Tan

    (Southwest Jiaotong University)

Abstract

Ecological rehabilitation of disused mines can enhance terrestrial carbon sinks and sequestration, accelerating progress toward global carbon neutrality. A differential game model between government and firm players involved in such a rehabilitation project is developed in this study based on the Eco-environment-oriented Development (EOD) paradigm. The model examines decision-making dynamics under grandfathering and benchmarking rules. The effects of various government policies (e.g., ecological rehabilitation compensation, carbon quota exchange policies) on multiple factors (including investment levels in mine rehabilitation and greener industries, the size of ecological rehabilitation, the quality of greener industries, and the revenues of both sides) are investigated comprehensively. The findings reveal several insights, (1) To incentivize firms with high carbon emissions to participate in EOD projects for disused mines, the government must differentiate land appreciation income distribution ratios and tax rates for greener industries. (2) Extended concession periods could motivate firms to invest more in ecological rehabilitation and greener-industry development. (3) The benchmarking rule consistently yields optimal outcomes, regardless of whether the government implements an ecological rehabilitation compensation or a carbon quota exchange policy. (4) Setting a higher carbon quota exchange factor can lead to Pareto improvements in both environmental and economic outcomes for the ecological rehabilitation compensation policy.

Suggested Citation

  • Ning Wang & Deqing Tan, 2025. "Optimal Incentives for Eco-Environment-Oriented Development of Disused Mines Based on Differential Games: Ecological Rehabilitation Compensation or Carbon Quota Exchange," Computational Economics, Springer;Society for Computational Economics, vol. 66(5), pages 4451-4492, November.
    • Handle: RePEc:kap:compec:v:66:y:2025:i:5:d:10.1007_s10614-025-10846-y
    DOI: 10.1007/s10614-025-10846-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10614-025-10846-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10614-025-10846-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:kap:compec:v:66:y:2025:i:5:d:10.1007_s10614-025-10846-y. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.