Abstract: Government regulation is an important means to promote the extension of producer responsibility. Through the establishment of the agency model based on the public, the government and the producer, the situation of non-cooperation and the cooperation regulation between the public and the government respectively is modeled and analyzed, and the simulation is carried on. The study finds that the cooperation regulation is better than the non-cooperation regulation. The cooperation regulation should take into account the factors such as the risk aversion degree of the manufacturers, the uncertainty of the external environment, the cost coefficient, the comprehensive ability level, the economic benefit and the environmental benefit. The government should mobilize the enthusiasm of the parties to fulfill the responsibility of resources and environment, improve the level of public participation, innovate incentive and restraint mechanism, according to the specific circumstances of the manufacturers, take differentiated incentives, strengthen the implementation of producer responsibility extension system supervision and evaluation, and continuously improve Management level.

Key words: government regulation, EPR, principal-agent model, simulation analysis