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The Influence of Clean Up Capital Subsidies in Environmental Optimal Control Models with Complex Dynamics

Christophe Deissenberg and Laurent Cellarier

No 323, Computing in Economics and Finance 1999 from Society for Computational Economics

Abstract: This paper investigates the influence of clean-up subsidies on the dynamics of models of production-environment interaction in continuous time. We show that complex dynamics can arise in the cases of socially optimal and decentralised solutions. Thus, it is possible that pollution can increase faster locally in a society that values a cleaner environment than it does in one less ecologically oriented.

Date: 1999-03-01
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Persistent link: https://EconPapers.repec.org/RePEc:sce:scecf9:323

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More papers in Computing in Economics and Finance 1999 from Society for Computational Economics CEF99, Boston College, Department of Economics, Chestnut Hill MA 02467 USA. Contact information at EDIRC.
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