|
| Variable | Type |
|
| Administrative penalties | Auxiliary |
| Compensation factor | Constant |
| Concentration of pollutants | Constant |
| Cost for enterprise to upgrade facilities | Auxiliary |
| Cost of complaints | Auxiliary |
| Difference in profit while upgrading facilities | Auxiliary |
| Difference in payoffs under governmental regular inspection | Auxiliary |
| Economic penalty | Constant |
| Enterprise’s expected payoffs | Auxiliary |
| Enterprise’s expected payoffs with upgrading facilities | Auxiliary |
| Enterprise’s expected payoffs without upgrading facilities | Auxiliary |
| Illegal emissions | Auxiliary |
| Expected payoffs of governmental regular inspection | Auxiliary |
| Expected payoffs of residents who do not appeal to compensation | Auxiliary |
| Expected payoffs of residents who appeal to compensation | Auxiliary |
| Expected payoffs that the government does irregular inspection | Auxiliary |
| Expected payoffs of government | Auxiliary |
| Government subsidy | Constant |
| Health loss that residents exposed to environment | Auxiliary |
| Local salary | Constant |
| Maintenance cost | Auxiliary |
| Expected payoffs of residents | Auxiliary |
| Power generation | Constant |
| Power generation capacity | Constant |
| Probability change on enterprise | Rate |
| Probability change on government | Rate |
| Probability change on residents | Rate |
| Probability that the government implements regular inspection | Level |
| Probability that residents appeal to compensation | Level |
| Probability that the enterprise upgrades facilities | Level |
| Profit of power generation | Auxiliary |
| Residents’ compensation | Auxiliary |
| Standard value of pollutants | Constant |
| The cost of governmental regular inspection | Constant |
| The expected compensation of residents | Auxiliary |
| Cost of waste incineration | Auxiliary |
| Waste treatment capacity | Constant |
|
