Institutional Innovation under Circular Economy

Circular economy is an appropriate model for the socio-ecnomic development and inevitable choice for the sustainable development in P. R China. The implementation of circular economy would lead to the reallocation of the benefits among stakeholders who are involved in. It would be difficult in the circular economy development if there is no supportive institutional regulations available to function as motives. Based on the game theory, the relationship among stakeholders, especially between enterprises and government, is analysed and relevant suggestions on the institutional innovation are put forward.