Analysis of the Tripartite Evolutionary Game between MRV Institutions, Government, and Enterprises in the Context of the Carbon Trading Market

Abstract

As the global carbon emission trading market develops, the role of Monitoring, Reporting, and Verification (MRV) institutions is becoming increasingly important. This paper analyzes the tripartite evolutionary game among MRV institutions, local government, and enterprises within the carbon trading market context and explores the impact of various factors on market behavior through sensitivity analysis. We find that changes in carbon prices, market maturity, the rent-seeking cost of enterprises, penalty policies of local government, and the supervisory intensity of MRV institutions significantly influence the strategic choices of the participating entities. Notably, high carbon prices may lead to collusive behaviors between enterprises and local government, while strengthened supervision and a reasonable penalty mechanism can promote fairness and justice in the market.