The international stock pollutant control: a stochastic formulation

Omar J. Casas and Rosario Romera

DES - Working Papers. Statistics and Econometrics. WS from Universidad Carlos III de Madrid. Departamento de Estadística

Abstract: In this paper we provide a stochastic dynamic game formulation of the economics of international environmental agreements on the transnational pollution control when the environmental damage arises from stock pollutant that accumulates, for accumulating pollutants such as CO2 in the atmosphere. To improve the cooperative and the noncooperative equilibrium among countries, we propose the criteria of the minimization of the expected discounted total cost. Moreover, we consider Stochastic Dynamic Games formulated as Stochastic Dynamic Programming and Cooperative versus Noncooperative Stochastic Dynamic Games. The performance of the proposed schemes is illustrated by a real data based example.

Keywords: Stochastic; optimal; control; Stochastic; dynamic; programming; Stochastic; dynamic; games; Markov; decision; processes; International; pollutant; control; Environmental; economics; Sustainability (search for similar items in EconPapers)
JEL-codes: C44 C61 C63 C73 D70 Q20 (search for similar items in EconPapers)
Date: 2009-02
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cte:wsrepe:ws090804

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