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Singular Optimal Control Model of Stock-Dependent Environmental Policies

Author

Listed:
  • K. Erdlenbruch

    (Cemagref, UMR G-EAU and LAMETA)

  • M. Tidball

    (INRA, UMR LAMETA)

Abstract

In many countries, forest policies consist of a system of various regulations, taxes, and subsidies. In this article, we focus on those policies that regulate selective harvesting and study the example of Central Africa. We use a deterministic singular optimal control model of renewable resources to assess these policies with respect to a first best situation which integrates a social surplus or externality function. In particular, in contrast to earlier articles, we analyze a stock dependent tax, for which the objective function is piecewise differentiable. We use a theorem proposed by Hartl and Feichtinger to solve the mathematical problem. We show that this tax is the most flexible instrument with respect to fund collection.

Suggested Citation

  • K. Erdlenbruch & M. Tidball, 2006. "Singular Optimal Control Model of Stock-Dependent Environmental Policies," Journal of Optimization Theory and Applications, Springer, vol. 131(1), pages 69-88, October.
    • Handle: RePEc:spr:joptap:v:131:y:2006:i:1:d:10.1007_s10957-006-9130-8
    DOI: 10.1007/s10957-006-9130-8
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