Incentive mechanism design for safety management of hydropower construction

To prevent major accidents fundamentally in hydropower constructions,it's necessary to a design incentive mechanism for construction safety management.The characteristics of hydropower construction are analyzed to seek for multitasking and multiple-agency relationship in safety management.According to the participation constraint and incentive compatibility constraint,an incentive model is constructed to optimize the overall safety goals.The equilibrium solution of this model implies that the optimum performance pay between engineering construction and safety management is mutually independent under the condition of one-vote negation system concerning safety accidents.Simultaneously,the optimum performance pay is a decreasing function of the absolute risk aversion,the change rate of marginal incentive cost and the observable variables variance.Finally,an example is given to discuss the incentive parameters of the government and the project department.