Incentive Contract Design for Cooperation and Win-Win of Chinese Government and Enterprise in the View of Ecological Civilization

Hongwei LIN, Yihong LUO, Huishan LIN, Yunhua ZHANG, Zhiliang ZHANG


In the view of ecological civilization, the incentive contract between government and enterprise to cooperate and build ecological economy is built by introducing value preference parameter into the classical principal-agent model. Model equilibrium has been analyzed and a numerical example verifies the validity of conclusion. Research results prove that value preference parameter can effectively coordinate interest relationship between government and enterprise and control incentive cost. Value preference parameter of government, marginal output and risk avoidance attitude of enterprise can influence the change of incentive contract.


Ecological civilization; Value preference; Cooperation between government and enterprise; Win-win; Contract design

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