Pollution control in a multiregional setting: a differential game with spatially distributed controls
Javier de Frutos and
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Javier de Frutos: IMUVA, Universidad de Valladolid
Guiomar MartÃn-HerrÃ¡n: IMUVA, Universidad de Valladolid
No 201601, Gecomplexity Discussion Paper Series from Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation"
We analyze a differential game model where pollution control is spatially distributed among a number, possibly large, of agents with predetermined spatial relationships. The analysis emphasizes the effects of the different geographical relationships among decision makers. The game has one state variable (pollution stock) distributed among one large region divided in subregions which control their own emissions of pollutants. The emissions are also represented as distributed variables. The dynamics of the state variable is defined by a parabolic PDE. We numerically characterize the feedback Nash equilibrium of a discrete-space model that still captures the spatial interactions among agents.
Keywords: Spatially Distributed Controls; Spatial Dynamics; Parabolic Differential Equations; Differential Games; Transboundary Pollution. (search for similar items in EconPapers)
JEL-codes: R12 Q5 C73 C61 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016-01, Revised 2016-01
New Economics Papers: this item is included in nep-env and nep-gth
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Persistent link: https://EconPapers.repec.org/RePEc:cst:wpaper:201601
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