IDEAS home Printed from https://ideas.repec.org/a/wly/complx/v2022y2022i1n6878504.html

Analysis of the Mechanism of Political Cost in the Complex Environmental Governance System

Author

Listed:
  • Xintao Li
  • Tongshun Cheng
  • Zaisheng Zhang
  • Li Zhao

Abstract

The emergence of conflicts between environmental safety incidents and protection rights generates sizeable political costs, which endangers the legitimacy of the government as well as political security and stability. This article further examines the role of political costs in environmental issues. First, political costs in relation to environmental issues are defined. An equilibrium strategic analysis is then presented using an evolutionary game model in which the strategic behavioral choices of government, enterprises, and citizens are investigated by embedding political costs in the environmental governance system. Furthermore, the small‐signal model was innovatively applied to simulate and analyze the stability of political costs under different equilibrium strategies in the system. The results show the following. (1) Pubic behavior and government are the dominant factors that impact stability and instability, respectively. Public behavior is the core element that affects political cost consumption. (2) When political costs are extremely depleted, the public will neglect economic interests, turn toward environmental interests, and choose the negative participation strategy, which destabilizes the system. (3) The political cost signal at the optimal equilibrium point not only warns the government not to take the desperate action of concealing information asymmetry but also allows the government to let go of its hands to deal with the environmental issues. Corresponding policy recommendations are proposed.

Suggested Citation

  • Xintao Li & Tongshun Cheng & Zaisheng Zhang & Li Zhao, 2022. "Analysis of the Mechanism of Political Cost in the Complex Environmental Governance System," Complexity, John Wiley & Sons, vol. 2022(1).
  • Handle: RePEc:wly:complx:v:2022:y:2022:i:1:n:6878504
    DOI: 10.1155/2022/6878504
    as

    Download full text from publisher

    File URL: https://doi.org/10.1155/2022/6878504
    Download Restriction: no

    File URL: https://libkey.io/10.1155/2022/6878504?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
    ---><---

    References listed on IDEAS

    as
    1. Gangadharan, Lata & Valenzuela, Ma. Rebecca, 2001. "Interrelationships between income, health and the environment: extending the Environmental Kuznets Curve hypothesis," Ecological Economics, Elsevier, vol. 36(3), pages 513-531, March.
    2. Ahmed, Zahoor & Asghar, Muhammad Mansoor & Malik, Muhammad Nasir & Nawaz, Kishwar, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Resources Policy, Elsevier, vol. 67(C).
    3. Zahoor Ahmed & Muhammad Mansoor Asghar & Muhammad Nasir Malik & Kishwar Nawaz, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Post-Print hal-03557938, HAL.
    4. Pham, Anh Viet, 2019. "Political risk and cost of equity: The mediating role of political connections," Journal of Corporate Finance, Elsevier, vol. 56(C), pages 64-87.
    5. Belz, Thomas & von Hagen, Dominik & Steffens, Christian, 2019. "Taxes and firm size: Political cost or political power?," Journal of Accounting Literature, Elsevier, vol. 42(C), pages 1-28.
    6. Batabyal, Amitrajeet A., 1995. "Development, trade, and the environment: which way now?," Ecological Economics, Elsevier, vol. 13(2), pages 83-88, May.
    7. Chen, Shiyi, 2015. "Environmental pollution emissions, regional productivity growth and ecological economic development in China," China Economic Review, Elsevier, vol. 35(C), pages 171-182.
    8. Zhilin Mu & Shuchun Bu & Bing Xue, 2014. "Environmental Legislation in China: Achievements, Challenges and Trends," Sustainability, MDPI, vol. 6(12), pages 1-13, December.
    9. Toyotaka Sakai, 2012. "Fair waste pricing: an axiomatic analysis to the NIMBY problem," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(2), pages 499-521, June.
    10. Oksay, Serhan & Iseri, Emre, 2011. "A new energy paradigm for Turkey: A political risk-inclusive cost analysis for sustainable energy," Energy Policy, Elsevier, vol. 39(5), pages 2386-2395, May.
    11. Yan, Yaxue & Zhang, Xiaoling & Zhang, Jihong & Li, Kai, 2020. "Emissions trading system (ETS) implementation and its collaborative governance effects on air pollution: The China story," Energy Policy, Elsevier, vol. 138(C).
    12. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    13. Slimane Dridi & Laurent Lehmann, 2016. "Environmental complexity favors the evolution of learning," Behavioral Ecology, International Society for Behavioral Ecology, vol. 27(3), pages 842-850.
    14. Bina, Olivia & Vaz, Sofia Guedes, 2011. "Humans, environment and economies: From vicious relationships to virtuous responsibility," Ecological Economics, Elsevier, vol. 72(C), pages 170-178.
    15. Yingxin Chen & Jing Zhang & Pandu R. Tadikamalla & Xutong Gao, 2019. "The Relationship among Government, Enterprise, and Public in Environmental Governance from the Perspective of Multi-Player Evolutionary Game," IJERPH, MDPI, vol. 16(18), pages 1-17, September.
    Full references (including those not matched with items on IDEAS)

    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. Ahakwa, Isaac & Xu, Yi & Tackie, Evelyn Agba, 2023. "Greening human capital towards environmental quality in Ghana: Insight from the novel dynamic ARDL simulation approach," Energy Policy, Elsevier, vol. 176(C).
    2. Wang, Shubin & Zhao, Erlong & Razzaq, Hafiz Kashif, 2022. "Dynamic role of renewable energy efficiency, natural resources, and climate technologies in realizing environmental sustainability: Implications for China," Renewable Energy, Elsevier, vol. 198(C), pages 1095-1104.
    3. Zahoor Ahmed & Michael Cary & Sajid Ali & Muntasir Murshed & Hamid Ullah & Haider Mahmood, 2022. "Moving toward a green revolution in Japan: Symmetric and asymmetric relationships among clean energy technology development investments, economic growth, and CO2 emissions," Energy & Environment, , vol. 33(7), pages 1417-1440, November.
    4. Sun, Yunpeng & Tian, Wenjuan & Mehmood, Usman & Zhang, Xiaoyu & Tariq, Salman, 2023. "How do natural resources, urbanization, and institutional quality meet with ecological footprints in the presence of income inequality and human capital in the next eleven countries?," Resources Policy, Elsevier, vol. 85(PA).
    5. Miao, Yang & Razzaq, Asif & Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji, 2022. "Do renewable energy consumption and financial globalisation contribute to ecological sustainability in newly industrialized countries?," Renewable Energy, Elsevier, vol. 187(C), pages 688-697.
    6. Feng, Langang & Hu, Jin & Wu, Kaiya & Huang, Minmin & Hu, Mingjun, 2025. "Investigating the role of green mobility in coupling coordination of urbanization and ecological environment: Evidence from high-speed rail accessibility," Transport Policy, Elsevier, vol. 170(C), pages 24-33.
    7. Yung-Jaan Lee, 2022. "Hybrid Ecological Footprint of Taipei," Sustainability, MDPI, vol. 14(7), pages 1-16, April.
    8. Lee, Chien-Chiang & Qian, Anqi, 2024. "Regional differences, dynamic evolution, and obstacle factors of cultivated land ecological security in China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    9. Riza Radmehr & Samira Shayanmehr & Ernest Baba Ali & Elvis Kwame Ofori & Elżbieta Jasińska & Michał Jasiński, 2022. "Exploring the Nexus of Renewable Energy, Ecological Footprint, and Economic Growth through Globalization and Human Capital in G7 Economics," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    10. Wang, Shuhong & Tian, Wenqian & Lu, Binbin, 2023. "Impact of capital investment and industrial structure optimization from the perspective of "resource curse": Evidence from developing countries," Resources Policy, Elsevier, vol. 80(C).
    11. Obadiah Ibrahim Damak & Hasan Güngör, 2023. "Globalization and energy consumption's effect on Japan's ecological imprint: Implications for environmental sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(5), pages 3881-3895, October.
    12. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    13. Renhan Guo & Ghulam Rasool Madni, 2024. "Encirclement of productive capacities and institutions in context of sustainable development," PLOS ONE, Public Library of Science, vol. 19(3), pages 1-18, March.
    14. Yugang He, 2022. "Renewable and Non-Renewable Energy Consumption and Trade Policy: Do They Matter for Environmental Sustainability?," Energies, MDPI, vol. 15(10), pages 1-17, May.
    15. Liu, Kai & Mahmoud, Haitham A. & Liu, Liqun & Halteh, Khaled & Arnone, Gioia & Shukurullaevich, Nizomjon Khajimuratov & Alzoubi, Haitham M., 2024. "Exploring the Nexus between Fintech, natural resources, urbanization, and environment sustainability in China: A QARDL study," Resources Policy, Elsevier, vol. 89(C).
    16. Tomiwa Sunday Adebayo, 2026. "Exploring the effects of ICT, financial institutions and market access on CO2 emissions: insights from time-varying frequency quantile regression analysis," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-24, December.
    17. Ayoub Zeraibi & Daniel Balsalobre-Lorente & Khurram Shehzad, 2021. "Testing the Environmental Kuznets Curve Hypotheses in Chinese Provinces: A Nexus between Regional Government Expenditures and Environmental Quality," IJERPH, MDPI, vol. 18(18), pages 1-16, September.
    18. Huaide Wen & Jun Dai, 2021. "The Change of Sources of Growth and Sustainable Development in China: Based on the Extended EKC Explanation," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    19. Bright Akwasi Gyamfi & Divine Q. Agozie & Festus Victor Bekun & Cihat Köksal, 2024. "Beyond the Environmental Kuznets Curve in South Asian economies: accounting for the combined effect of information and communication technology, human development and urbanization," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(5), pages 11263-11288, May.
    20. Bai, Yiran & Tang, Shichao & Lu, Chunxian & Chen, Beier & Yan, Minghui, 2023. "Economic policy uncertainty and natural resource policy in the United States," Resources Policy, Elsevier, vol. 83(C).

    More about this item

    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:wly:complx:v:2022:y:2022:i:1:n:6878504. 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: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/8503 .

    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.