An evolutionary analysis of green finance sustainability based on multi-agent game.

Green finance development, which enhances innovation capacity and economic green transformation, helps people deal with the challenges of climate change, ecological crisis and energy security. It is important to achieve sustainable and balanced development for green finance. In this paper, an evolutionary game model is built with four participants, which include governments, financial institutions, enterprises, and consumers. Analogue simulation is applied to analyze the influences of each parameter on changes and development in green financial market. Equilibrium strategy and influence mechanism of participating entities are investigated. The result shows that: first, the integrity of the green financial system has a positive impact on sustainability developments and cleaner production. Second, it is critical to strengthen the government regulation, slash financial institutions and enterprises' green finance production cost, increase the compensation for consumer pollution, and reduce the supervision cost of government. Accordingly, to integrity green financial system, governments, financial institutions, enterprises, and consumers needs participation and cooperation among each other. Image 1 • Evolutionary game model was established, and it was used to analyze and simulate green finance sustainability based on multi-agent.. • Green finance, together with consumers' strong environmental protection preferences leads to a more comprehensive development of green financial market.. • Increasing benefits promote green sustainability, but more cost will lead to negative effects.. • The influence of four participants on evolution was analyzed. [ABSTRACT FROM AUTHOR]