Air Pollution Regulations in China: A Policy Simulation Approach with Evolutionary Game

In the institutional context of China’s political centralization and fiscal decentralization, this study explores environmental regulations that make central local governments join efforts in air pollution control. Policy simulations an evolutionary game show best approach is to internalize costs benefits governments’ objective function. The effectiveness several policy instruments examined individually jointly, including administrative inspection, transfer payment, taxes. It shown case consequences are not internalized, appropriate application can incentivize goal-oriented choose socially optimal strategy.