How to Control Waste Incineration Pollution? Cost-Sharing or Penalty Mechanism—Based on Two Differential Game Models.

This study examines the effectiveness of two government policies—cost-sharing and penalty mechanisms—in incentivizing waste incineration plants to invest in pollution control. Using differential game models to represent interactions between the government and incineration plants, the research finds that both mechanisms can stimulate pollution control when incineration pollution significantly impacts the government. However, when pollution more severely affects the incineration plants themselves, the cost-sharing mechanism is more effective. Additionally, the government's utility tends to be higher under the cost-sharing mechanism, especially in contexts with larger amounts of municipal solid waste, while incineration plants generally achieve greater profits under cost sharing in such scenarios. These findings offer policy guidance for tailoring pollution control strategies based on the relative impact of pollution and the scale of waste management challenges.