A DIFFERENTIAL GAME OF POLLUTION CONTROL WITH OVERLAPPING GENERATIONS

Stefan Wrzaczek (), Ekaterina Shevkoplyas and Sergey Kostyunin
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Stefan Wrzaczek: University of Vienna, Department of Business Administration, Oskar-Morgenstern-Platz 1, A-1090 Vienna, Austria;
Ekaterina Shevkoplyas: Saint-Petersburg State University, Universitetskii prospekt 35, Petergof, Saint-Petersburg, 198504, Russia
Sergey Kostyunin: Saint-Petersburg State University, Universitetskii prospekt 35, Petergof, Saint-Petersburg, 198504, Russia

International Game Theory Review (IGTR), 2014, vol. 16, issue 03, 1-14

Abstract: We formulate an overlapping generations model on optimal emissions with continuous age structure. We compare the noncooperative solution to the cooperative one and obtain fundamental differences in the optimal strategies. Also including an altruistic motive does not avoid the problem of themyopicnoncooperative solution. Finally we define a time-consistent tax scheme to obtain the cooperative solution in the noncooperative case.

Keywords: Differential game; overlapping generations; pollution; Pontryagin's Maximum Principle; Nash equilibrium (search for similar items in EconPapers)
JEL-codes: B4 C0 C6 C7 D5 D7 M2 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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DOI: 10.1142/S0219198914500054

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