Evolutionary game analysis and simulation of green production supervision considering limited resources of the enterprise

This paper studies the green production supervision problem through considering the impact of the limited resources of the enterprise and the tax relationship between the government and the enterprise. Because of the bounded rationality of the players, evolutionary game model is built and the ESS of the model is given. In the built model, the enterprise’s goal is profit maximization and the government’s goal is social welfare maximization. Based on the ESS of the proposed model, simulation analysis of how penalty parameters affect the ESS is given. Also, the impact of the penalty parameters on the probability of failed supervision is analysed. Failed supervision is defined as the condition when the government’s decision is weak supervision and the enterprise’s decision is not green. Results of the ESS and the simulation analysis show that increasing the penalty parameters under given conditions can help reduce the failed supervision probability and then help improve the quality of the environment.