Towards urban-rural sustainable cooperation: Models and policy implication

In the process of urbanization, many developing countries have had, or are being confronted with severe imbalance between urban and rural development, which causes serious un-sustainability. To address these challenges, this paper designs models to explore an ‘urban-rural sustainable cooperation’ pattern, with the idea of realizing 'green poverty reduction' in rural areas. Firstly, the infinitely repeated game model with trigger strategy is employed to prove the feasibility of establishing long-term urban-rural cooperation mode, with two conditions of low time preference rate and high efficiency of utilizing resource. Then this paper further discusses four requirements to enhance the accomplishment of green poverty reduction by cost-benefit analysis model: high antipollution costs afterwards, low time preference rate, the society's urgent need for environmental restoration, and high output gains without destroying environment. Lastly, this paper puts forward targeted policy proposals accordingly for relieving urban-rural imbalance problems in developing countries.