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Network-Based Optimal Control of Pollution Growth

Author

Listed:
  • Fausto Gozzi
  • Marta Leocata
  • Giulia Pucci

Abstract

This paper studies a model for the optimal control (by a centralized economic agent which we call the planner) of pollution diffusion over time and space. The controls are the investments in production and depollution and the goal is to maximize an intertemporal utility function. The main novelty is the fact that the spatial component has a network structure. Moreover, in such a time-space setting we also analyze the trade-off between the use of green or non-green technologies: this also seems to be a novelty in such a setting. Extending methods of previous papers, we can solve explicitly the problem in the case of linear costs of pollution.

Suggested Citation

  • Fausto Gozzi & Marta Leocata & Giulia Pucci, 2024. "Network-Based Optimal Control of Pollution Growth," Papers 2406.15338, arXiv.org.
    • Handle: RePEc:arx:papers:2406.15338
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    References listed on IDEAS

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    1. Giuseppe Freni & Fausto Gozzi & Neri Salvadori, 2006. "Existence of optimal strategies in linear multisector models," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(1), pages 25-48, September.
    2. Boucekkine, Raouf & Fabbri, Giorgio & Federico, Salvatore & Gozzi, Fausto, 2021. "From firm to global-level pollution control: The case of transboundary pollution," European Journal of Operational Research, Elsevier, vol. 290(1), pages 331-345.
    3. Raouf Boucekkine & Giorgio Fabbri & Salvatore Federico & Fausto Gozzi, 2019. "Growth and agglomeration in the heterogeneous space: a generalized AK approach," Journal of Economic Geography, Oxford University Press, vol. 19(6), pages 1287-1318.
    4. Boucekkine, Raouf & Fabbri, Giorgio & Federico, Salvatore & Gozzi, Fausto, 2021. "From firm to global-level pollution control: The case of transboundary pollution," European Journal of Operational Research, Elsevier, vol. 290(1), pages 331-345.
    5. de Frutos, Javier & Martín-Herrán, Guiomar, 2019. "Spatial effects and strategic behavior in a multiregional transboundary pollution dynamic game," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 182-207.
    6. Javier Frutos & Víctor Gatón & Paula M. López-Pérez & Guiomar Martín-Herrán, 2022. "Investment in Cleaner Technologies in a Transboundary Pollution Dynamic Game: A Numerical Investigation," Dynamic Games and Applications, Springer, vol. 12(3), pages 813-843, September.
    7. de Frutos, Javier & Martín-Herrán, Guiomar, 2019. "Spatial vs. non-spatial transboundary pollution control in a class of cooperative and non-cooperative dynamic games," European Journal of Operational Research, Elsevier, vol. 276(1), pages 379-394.
    8. Freni, Giuseppe & Gozzi, Fausto & Pignotti, Cristina, 2008. "Optimal strategies in linear multisector models: Value function and optimality conditions," Journal of Mathematical Economics, Elsevier, vol. 44(1), pages 55-86, January.
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