An Optimization Management Model for Countries with Mutually Competitive Regions

Peng Li and Weizhou Zhong
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Peng Li: School of Mathematics and Statistics, North China University of Water Resources and Electric Power, Zhengzhou 450045, China
Weizhou Zhong: School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China

Sustainability, 2020, vol. 12, issue 6, 1-14

Abstract: It is difficult to manage resources allocation and pollution in a multi-regional country with mutually competitive relations. This work therefore intends to propose an optimal control model for the management problem. Through introducing the union utility function to model competitive interactions, we construct an integrated economy, resource, and environment macroeconomic model according to the social practices in the country with some competitive regions. Numerical procedures are proposed to search for the optimal energy policy and antipollution strategy of the model. As shown, an optimal fair tradeoff between efficiency and equity can be balanced for each region in the country. More important, the model verifies the importance of the role of government for management problems in a country with complex internal competitive relations

Keywords: Optimization Macroeconomic Model; mutually competitive regions; energy resource development; Nash equilibrium; cooperative game (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:6:p:2326-:d:333289

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