Controlling pollution and environmental absorption capacity
Fouad Ouardighi (),
Hassan Benchekroun () and
Annals of Operations Research, 2014, vol. 220, issue 1, 111-133
This pollution accumulation model shows that the environmental absorption capacity is impacted by economic activity. The resulting optimal control problem has two inter-related state variables: the stock of pollution and the absorption capacity of the environment. The stock of pollution decreases with environmental absorption capacity and increases with the rate of current emissions, which is controlled by a production level as well as an emissions reduction effort. However, the environmental absorption capacity is positively affected by an absorption development effort, and negatively impacted by the stock of pollution. Under specific conditions, it is shown that an optimal path, which can be either monotonic or following transient oscillations, leads to a (nontrivial) saddle-point characterized by a positive environmental absorption capacity. Copyright Springer Science+Business Media, LLC 2014
Keywords: Pollution; Environmental absorption capacity; Production rate; Emissions reduction effort; Absorption development effort (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:220:y:2014:i:1:p:111-133:10.1007/s10479-011-0982-4
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