A hybrid strategy game analysis on low-carbon policy and the energy economic system in Heilongjiang province

Energy conservation and emissions reduction are at the forefront of China's economic development agenda due to the country's rising energy demand. The paper examines the energy economy system of Heilongjiang Province, China, with a focus on governments and businesses as research subjects. Using game theory, a hybrid strategy game model between the government and energy companies is constructed to analyze a variety of factors, including government inspection costs, short-term profits of energy companies, and incentive levels. The findings of the study indicate that collusion between local governments and businesses can be effectively curbed by implementing measures such as cost reduction and increased government penalties. Governments should establish a robust and effective energy economy development system, which would facilitate the coordination of relationships among different entities within the energy economy system, with the aim of improving enterprise efficiency in the implementation of national low-carbon economic policies.