IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v46y2025i1p378-392.html

How to address enterprise collusion in falsifying carbon emission data: A game theory analysis

Author

Listed:
  • Yong Sun
  • Xinqi Yang
  • Runtian Wu
  • Guangxiang Gong
  • Tianjie Lei

Abstract

Falsification of carbon emissions data poses a significant challenge to the integrity of the carbon trading market. Addressing this issue requires a comprehensive strategy involving various stakeholders. This paper focuses on collusive behavior in carbon emissions data falsification. An evolutionary game model is established to illustrate the interactions between local governments, carbon‐emitting enterprises, and third‐party carbon verification agencies. The stability of the evolutionary game and its conditions are analyzed, revealing the impact of regulatory penalties, credit losses, and awareness of responsibility. This study proposes a management framework tailored for this tripartite game, providing valuable insights for policy formulation.

Suggested Citation

  • Yong Sun & Xinqi Yang & Runtian Wu & Guangxiang Gong & Tianjie Lei, 2025. "How to address enterprise collusion in falsifying carbon emission data: A game theory analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(1), pages 378-392, January.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:1:p:378-392
    DOI: 10.1002/mde.4380
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.4380
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.4380?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. Nicole D. Miranda & Jesus Lizana & Sarah N. Sparrow & Miriam Zachau-Walker & Peter A. G. Watson & David C. H. Wallom & Radhika Khosla & Malcolm McCulloch, 2023. "Change in cooling degree days with global mean temperature rise increasing from 1.5 °C to 2.0 °C," Nature Sustainability, Nature, vol. 6(11), pages 1326-1330, November.
    2. Alex Gurvich & Germán G. Creamer, 2021. "Overallocation and Correction of Carbon Emissions in the Evaluation of Carbon Footprint," Sustainability, MDPI, vol. 13(24), pages 1-14, December.
    3. Le Luo & Qingliang Tang & Hanlu Fan & Jamie Ayers, 2023. "Corporate carbon assurance and the quality of carbon disclosure," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(1), pages 657-690, March.
    4. Shuaishuai Fu & Weida Chen & Junfei Ding, 2023. "The governance of rent‐seeking behavior in carbon asset pledge financing: An evolutionary game perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(5), pages 2856-2868, July.
    5. Yong Sun & Yalin Wang & Baoyin Liu & Zhongrui Sun, 2023. "Evolutionary game of destination brand co‐construction with government involvement," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2125-2136, June.
    6. Nicole D. Miranda & Jesus Lizana & Sarah N. Sparrow & Miriam Zachau-Walker & Peter A. G. Watson & David C. H. Wallom & Radhika Khosla & Malcolm McCulloch, 2023. "Author Correction: Change in cooling degree days with global mean temperature rise increasing from 1.5 °C to 2.0 °C," Nature Sustainability, Nature, vol. 6(12), pages 1716-1716, December.
    7. Xia, Xiaoning & Li, Pengwei & Cheng, Yang, 2023. "Tripartite evolutionary game analysis of power battery carbon footprint disclosure under the EU battery regulation," Energy, Elsevier, vol. 284(C).
    8. David Newbery, 2023. "Efficient Renewable Electricity Support: Designing an Incentive-compatible Support Scheme," The Energy Journal, , vol. 44(3), pages 1-22, May.
    9. repec:aen:journl:ej44-3-newbery is not listed on IDEAS
    10. Le Luo, 2019. "The influence of institutional contexts on the relationship between voluntary carbon disclosure and carbon emission performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(2), pages 1235-1264, June.
    11. Zhang, Mengdi & Shen, Qiao & Zhao, Zhiheng & Wang, Shuaian & Huang, George Q., 2024. "Commitment or rent-seeking? Government incentive policies for ESG reporting in sustainable e-commerce logistics," International Journal of Production Economics, Elsevier, vol. 268(C).
    12. Bashir, Muhammad Farhan & Pan, Yanchun & Shahbaz, Muhammad & Ghosh, Sudeshna, 2023. "How energy transition and environmental innovation ensure environmental sustainability? Contextual evidence from Top-10 manufacturing countries," Renewable Energy, Elsevier, vol. 204(C), pages 697-709.
    13. Yi’ang Qi & Jingjing Yao & Lindong Liu, 2021. "Research on evolutionary game of environmental accounting information disclosure from the perspective of multi-agent," PLOS ONE, Public Library of Science, vol. 16(8), pages 1-23, August.
    14. Wu, Rongxin & Tan, Zhizhou & Lin, Boqiang, 2023. "Does carbon emission trading scheme really improve the CO2 emission efficiency? Evidence from China's iron and steel industry," Energy, Elsevier, vol. 277(C).
    15. Chensi Guo & Wenyan Pan, 2022. "Research on Voluntary Carbon Information Disclosure Mechanism of Enterprises from the Perspective of Stakeholders—A Case Study on the Automobile Manufacturing Industry," IJERPH, MDPI, vol. 19(24), pages 1-15, December.
    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. Yan, Ran & Zhou, Nan & Ma, Minda & Mao, Chao, 2025. "India's residential space cooling transition: Decarbonization ambitions since the turn of millennium," Applied Energy, Elsevier, vol. 391(C).
    2. Mohamed Toukabri & Lamia Kalai, 2024. "How does sustainability leadership improve climate change reporting? The choices associated with a sustainable board- A management perspective," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 29(7), pages 1-48, October.
    3. Zhu, Chaoping & Su, Yixuan & Fan, Ruguo & Xu, Ruiheng & Li, Bing, 2025. "Research on the optimal incentive and constraint mechanisms for corporate carbon information disclosure considering different market contexts: A network-based evolutionary game analysis," Energy Economics, Elsevier, vol. 142(C).
    4. Elsayih, Jibriel & Amraaiyid, Abdelmuttalab & Bugshan, Abdullah, 2025. "Economic growth and carbon disclosure: Does board composition matter?," Research in International Business and Finance, Elsevier, vol. 73(PA).
    5. Luo, Le & Zhang, Junru, 2025. "A global study of climate uncertainty and carbon assurance," The British Accounting Review, Elsevier, vol. 57(4).
    6. Shuai, Hang & Li, Fangxing & Zhu, Jinxiang & Tingen, William Jerome & Mukherjee, Srijib, 2025. "Hydroclimate-coupled framework for assessing power system resilience under summer drought and climate change," Renewable and Sustainable Energy Reviews, Elsevier, vol. 213(C).
    7. Rina Datt & Le Luo & Reuben Segara, 2025. "Voluntary carbon assurance and the cost of equity capital: International evidence," Australian Journal of Management, Australian School of Business, vol. 50(4), pages 1129-1165, November.
    8. Martin, Melissa & Sovacool, Benjamin K., 2025. "Beyond the thermostat: Critically reviewing the scientific evidence for global cooling and air conditioning demand," Applied Energy, Elsevier, vol. 401(PC).
    9. Jiang, Shaojing & Wei, Zhongwang, 2025. "Shifting drivers of urban cooling energy demand in China (1978–2024): A spatiotemporal analysis," Energy, Elsevier, vol. 338(C).
    10. Zhang, Mengdi & Yang, Wanting & Zhao, Zhiheng & Wang, Shuaian & Huang, George Q., 2024. "Do fairness concerns matter for ESG decision-making? Strategic interactions in digital twin-enabled sustainable semiconductor supply chain," International Journal of Production Economics, Elsevier, vol. 276(C).
    11. Satar Bakhsh & Md Shabbir Alam & Wei Zhang, 2024. "Green finance and Sustainable Development Goals: is there a role for geopolitical uncertainty?," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-30, August.
    12. Danny Zhao‐Xiang Huang, 2022. "An integrated theory of the firm approach to environmental, social and governance performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1567-1598, April.
    13. Brekke, Kurt R. & Straume, Odd Rune & Sørgard, Lars, 2025. "Trade, renewable energy, and market power in power markets," Energy Economics, Elsevier, vol. 151(C).
    14. Feifei Yu & Jiayi Mao & Qing Jiang, 2025. "Accumulate thickly to grow thinly: the U-shaped relationship between digital transformation and corporate carbon performance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(1), pages 2135-2160, January.
    15. Shih-Heng Yu & Ying-Sin Lin & Jia-Li Zhang & Chia-Shan Hsu & Shu-Min Cheng, 2025. "Incorporating Carbon Fees into the Efficiency Evaluation of Taiwan’s Steel Industry Using Data Envelopment Analysis with Negative Data," Sustainability, MDPI, vol. 17(18), pages 1-18, September.
    16. Jingwei Li & Shouwei Li & Yonghong Zhang & Xiaoyu Tang, 2023. "Evolutionary game analysis of rent seeking in inventory financing based on blockchain technology," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4278-4294, December.
    17. Tourgeman, Miriam & Cohen, Chen & Rubin, Ofir, 2024. "Preserving competition and economic welfare in Israel's PV market," Utilities Policy, Elsevier, vol. 91(C).
    18. Li, Mingchen & Li, Peigong & Zhu, Wanwan, 2025. "Greenhouse gas performance and disclosure-new global evidence," International Review of Financial Analysis, Elsevier, vol. 105(C).
    19. Maogang Tang & Silu Cheng & Wenqing Guo & Weibiao Ma & Fengxia Hu, 2023. "Relationship between carbon emission trading schemes and companies’ total factor productivity: evidence from listed companies in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11735-11767, October.
    20. Muntazir Hussain & Ramiz Ur Rehman & Usman Bashir, 2024. "Environmental pollution, innovation, and financial development: an empirical investigation in selected industrialized countries using the panel ARDL approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 29217-29248, November.

    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:mgtdec:v:46:y:2025:i:1:p:378-392. 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: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.